I agree. The institutional approach can help suggesting alternative solutions to such a predicament. I just want to add a theoretical part to that:
We've already had models that deal with long-term effects of different shocks [core argument in the first part of the article], be it consumption, or any other macro-level variables. There has also been a parallel debate concerning the "heterogeneous" nature of such factors: for example, the increase to 3.7% in savings may well over-or under-represent the true increase in savings. Same for consumption. A successful link to the monetary policies, I guess, may yield better results- with more mature policy implications.
Hosein Maleki is a PhD student in finance in a joint program of Concordia, McGill, and HEC Universities in Montreal, Canada.