I also want to suggest that the cumulative effect over the past few decades of changes in financial technology, financial regulation, monetary policy itself, and perhaps the real economy have significantly altered the ways in which monetary instruments transmit through to the real economy. These changes may argue for refinement of monetary policy tools.
They may also indicate the need for regulatory measures that are neither time varying nor limited to prudentially regulated firms, so as to provide a more stable financial foundation within which monetary policy will operate.