In this connection, I acknowledge that the Level 3 committee in the insurance field, the CEIOPS, has recently activated a systematic monitoring of the stability of the insurance sector in the EU very much along the lines of the BSC work.
Portfolio equilibrium could not be achieved by lowering domestic (local currency) interest rates, because these were set - in effect - by the high domestic marginal efficiency of capital: high interest rates were needed to rein in the intrinsic dynamism of the domestic economy.