The analytical model underlying this suggestion is that of a flow-of-funds matrix underpinned by the infrastructure (payment systems and other “plumbing”) required for it to function.27 Perhaps more by luck than design, there is a BIS committee dealing with each of these individual pillars: the Basle Committee on Banking Supervision (institutions), the Euro-currency Standing Committee (markets) and the Committee on Payment and Settlement Systems (infrastructure).
28 Pursuing the analytical framework one step further, it is evident that disturbances at the level of institutions, markets or infrastructure will have implications for market clearing conditions (interest rates, exchange rates, etc.) in the flow-of-funds matrix which could well have macroeconomic implications.