It takes time to fatten a hog, or build a building, or ship something from far away. In the interim, prices can fluctuate significantly. Too many economic models forget about these dynamics. But the short-term fluctuations can matter a lot, on our way to the long-term.
The regulatory-imposed constraint serves more as a backstop for when memories of the recent  BIS central bankers’ speeches  1  crisis fade, as they surely will in time. The regulatory constraint is designed to ensure that risk does not disappear from pricing when the euphoria returns. 2  BIS central bankers’ speeches