3  BIS Review 13/2000  As a consequence, the necessary alignment of the growth of aggregate demand with the growth of potential aggregate supply may well depend on restraint on domestic demand, which continues to be buoyed by the lagged effects of increases in stock market valuations.
Indeed, as I said at the time, the problem under our framework would instead be finding ways to turn down the CCyB thus embedded in our through-the-cycle capital requirements when the system was hit by a shock.