Is monetary policy responsible for the economic volatility and stagnation that developed economies have experienced - since 1969? A convincing argument exists: that raising interest rates increases the inflation level; interest rate hikes increase the price level of manufactured goods and reduce the amount produced. The continual use of monetary policy to control inflation will eventually reduce local production and increase imports.
http://www.onlineopinion.com.au/view.asp?article=5826&page=0
http://www.theaustralian.com.au/national-affairs/commentary/inflation-continues-to-squeeze-homeowners/story-e6frgd0x-1226047181222
http://www.onlineopinion.com.au/view.asp?article=1453&page=0
http://www.studien-von-zeitfragen.de/James_Cumes/Interest_Rate/interest_rate.html