Of course, it would be ideal if fine-tuning were possible, but in my view, monetary policy has a more important role to play, namely ensuring economic and financial stability in the medium to long term.
In his famous presidential address to the American Economic Association in 1967, Milton Friedman stated that “the first and most important lesson that history teaches about what monetary policy can do – and it is a lesson of the most profound importance – is that monetary policy can prevent money itself from being a major source of economic disturbance.” Seeing the significant decline in the level of real GDP in advanced economies following the collapse of Lehman Brothers and continuing high unemployment, I keenly feel it is important to prevent money itself from becoming a major source of economic disturbance.