Therefore, it is always more precise to characterize the monetary policy response in terms of adjustments to changes in prevailing and projected utilization rates rather than in terms of a response to prevailing and projected growth. Unfortunately, it is sometimes difficult to gauge the degree of excess demand associated with a given utilization rate, a subject I will return to later.
The same factors are driving the proposal of the U.S. authorities to require the supervisory application of Basel II only to the largest, most complex banks, in which scale and scope imply that the necessity of continued investment in improved risk-management techniques and greater emphasis on disclosure are particularly appropriate.