In other words, it is essential that the output gap shift from excess supply to excess demand and for such demand to increase further; in addition, inflation expectations need to become anchored at around 2 percent.
While balance sheet data for financial institutions are readily available, the relative contributions to changes in outstanding balances of new lending, paydowns, and writedowns and the levels of line usage are not available. To focus on the link between lending and new business activity, we need measures of loan originations.