This assessment, when added to our original historically-based approach and the methodology used in developing the capital surcharges, suggests strongly that a reduction in riskbased capital requirements for the U.S. G-SIBs would be ill-advised. In fact, one might conclude that a modest increase in these requirements--putting us a bit further from the bottom of the range--might be indicated.
If the total demand for resources is greater than the resources available, then at some point inflation will begin to develop. 3  BIS Review 62/2000  So in assessing the appropriate stance of monetary policy, the Reserve Bank can not ignore these indirect effects of the exchange rate on the total demand for New Zealand goods and services.