The model is missing the external factors if currency price and foreign import prices of goods and demand for your own currency. CB decisions have been greatly

The model is missing the external factors if currency price and foreign import prices of goods and demand for your own currency. CB decisions have been greatly cushioned by the fact that the US currency is reserve currency of the world at this time and instability elsewhere makes it remain such. If apple prices go up, demand can go abroad and that changes the dynamic for when you change interest rates (can farms support themselves when the price of applies is pushed down by imports and your inflation escapes). Thus recovery would look different in an open border world vs closed economy. Then it also compounds for countries such as the EU members where you have some with high exports and others with high debt that share the same currency and pushing one direction always hurts someone.