The paper then points out that, in the existing data, which do not sufficiently cover the increase in intangible assets, the amount of investment appears to be smaller than the theoretically optimal level. I will not go into more detail, but the paper also refers to the possibility that such an increase in intangible assets may weaken the effectiveness of monetary policy.
The Federal Reserve found ways to carry out its traditional central bank functions in this environment, and we are working with other policymakers, domestically and internationally, to put in place a strengthened regulatory framework that will help preserve stability in the face of the complexity, interconnectedness, and innovation in our modern financial system.