However, if the natural rate is not measured precisely and is simply replaced by its estimate in the above rule, then “estimation error becomes policy error, and stabilization policy becomes destabilizing”. 16 One therefore has to explore what the optimal monetary policy looks like in the presence of measurement uncertainties concerning the natural rate.
•  There are also claims that portfolio relocations and abundant liquidity may be causing episodes of bubbles in commodity prices for which future markets exist, with consequences for the prices of other commodities and final consumer prices.