I think that part of the problem is that macroeconomists think of the economy as a single system. Therefore, if you change a financial parameter, such as short interest rates, it will change supply and demand in the business economy.
It seems that the financial economy, which is the trading of various financial instruments between a lot of different parties, and the business economy, which produces, distributes and consumes goods and services, are two loosely coupled systems. Monetary volumes of financial trading are one or two orders of magnitude greater than the monetary volumes of good and services. Further, the financial economy is even more globalized than the business economy. The financial economy is showing signs of instability as regulators attempt to use it to control the business economy. Direct control of the business economy by fiscal measures, subsidies, tariffs and regulations would be more effective and cause less distortions than continued use of financial measures.
It seems that the financial economy, which is the trading of various financial instruments between a lot of different parties, and the business economy, which produces, distributes and consumes goods and services, are two loosely coupled systems. Monetary volumes of financial trading are one or two orders of magnitude greater than the monetary volumes of good and services. Further, the financial economy is even more globalized than the business economy. The financial economy is showing signs of instability as regulators attempt to use it to control the business economy. Direct control of the business economy by fiscal measures, subsidies, tariffs and regulations would be more effective and cause less distortions than continued use of financial measures.