However, it is practically impossible to conduct dialogues with all financial institutions of a shadow banking nature, and moreover, shadow banking activities tend to change rapidly with developments in financial markets. It should be noted that shadow banking entities are deeply involved in funding and investment with various financial institutions.
On the point Athanasios Orphanides raises about the value of the natural rate, we probably were wrong about that. I remember being stunned by a Bob Hall paper in the 1970s that placed the natural rate at about 5 percent. By the way, in the mid-1970s Franco began calling this rate NIRU, and later Jim Tobin, I think, switched it over to NAIRU.