Even if we were able to determine accurately the business cycle stance and the extent that the production capacity of the economy is being used, it is still doubtful that monetary policy would be useful in active business-cycle management. Changes in monetary policy instruments have a long and variable lag before they have an effect on economic conditions.
BIS Review 45/2008  1  clearly have more information to work with now in assessing the effects of financial market turmoil on small business access to credit. In its initial stages, the current financial market turmoil and associated problems in the housing market were focused on markets for securitized assets and affected primarily large financial organizations.