We have already seen some progress in risk measurement and management at many institutions in the United States and around the globe as a result of preparations for Basel II. Admittedly, banks have told us that some of the costs for Basel II would have been incurred anyway. But if anything, Basel II has accelerated the pace of this change.
We have heard that inflation matters: Households at different life stages and in different places are balancing the cost of living against their earnings, while businesses are balancing wages and other costs against their pricing power. We have heard that access to credit matters, and that it is important to use the full range of tools to support the economy.