Any demonstrably established relationship between macroeconomic variables changes when it is made useful for the purpose of monetary policy (as soon as an economic indicator is made a target for the purpose of monetary policy then it will lose the information content that would qualify it to play that role). – In other words, an indicator becomes ineffective the moment it is used for monetary policy. Empirically calculated regularities – e.g. between interest rates, money supply and inflation – become ineffective as soon as the system is intervened in from the outside with the aim of controlling it.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/