First statement: Supervisors are open to innovations in banking business — but banks and financial intermediaries in general must be able to manage the risks arising from new techniques. Supervisors have never stood in the way of innovations in banking, but instead have always worked hard to give entrepreneurs in this field a reliable legal basis for product development.
In addition, to the extent that the high-tech revolution increased the ability of firms to recognize and respond to changes in demand and quickly remedy unwanted inventory accumulation, the response of output to demand shocks might be less persistent. On the other hand, it appears that the high-tech revolution didn't help firms or other forecasters anticipate changes in demand.