Hierarchical mandates can cause a problem that Mervyn King, Governor of the Bank of England, refers to as an "inflation nutter," that can lead to large .

output fluctuation

Explanation: Several factors are responsible for fluctuations in economic output including increases in growth and inputs in factors of production. Anything that causes labor, capital, or efficiency to go up or down results in fluctuations in economic output. furthermore, increase in usage or effectiveness of factors of production can cause output to go up, anything that causes labour, capital or their effectiveness to go down will cause a decline in output. Governor of the Bank of England, refers to as an “inflation nutter”, that can leads to large output fluctuation.