Shorter-term developments in M3 and loans have also remained muted. The actual growth in M3 is seen as weaker than the underlying pace of monetary expansion, as the rather steep yield curve continues to foster the allocation of funds into longer-term deposits and securities outside M3.
The turmoil of recent years has prompted critics to maintain that many economic models, and particularly macroeconomic models based on rational expectations, have been proven to be fundamentally flawed. Much of the criticism directed towards forecasting and macroeconomic analysts has probably been misplaced.