In particular, a better quantitative understanding of how financial factors impact on forecasts for inflation and economic activity, and how they influence the effect of interest rates changes on the economy is desirable. That process of integrating the financial sector and variables in macroeconomic models is currently underway. A further conclusion arises from the fact that the financial system is opaque.
The experiences of the last decade suggest that financial regulators’ and supervisors’ ability to prevent excessive risk taking in the financial sector is limited.