Although Gordon has, at least in his most recent analysis, reached a similar conclusion about the dimension and source of the recent productivity acceleration as many others, he has argued that the computer does not measure up to the great inventions of the past, including electricity, internal combustion engines, petrochemicals, plastics, pharmaceuticals, and communications.
In that vein, Basel II will provide banks with a range of options for determining their capital requirements for credit and operational risk. This will allow both banks and supervisors to select approaches that are most appropriate for banks’ operations and local financial markets.