That reasoning suggests that monetary policy should focus on stabilizing a measure of "core" inflation, which is made up mostly of sticky prices. Simulations with FRB/US, the model of the U.S. economy created and maintained by the staff of the Federal Reserve Board (Mishkin, 2007b), illustrate this point.
Furthermore, the wisdom of having a government agency – even the independent central bank – assume such a permanent, central role in credit allocation should at least be subject to debate. A final regulatory issue is raised by another G-M response to their expectation that equity returns for NFBs will be lower than for traditional banks.