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Author (up) Taylor, J.B.; Williams, J.C. url  openurl
  Title Simple and robust rules for monetary policy Type Report
  Year 2010 Publication Abbreviated Journal  
  Volume Issue 2010-10 Pages  
  Keywords Monetary policy  
  Abstract This paper focuses on simple normative rules for monetary policy which central banks can use to guide their interest rate decisions. Such rules were first derived from research on empirical monetary models with rational expectations and sticky prices built in the 1970s and 1980s. During the past two decades substantial progress has been made in establishing that such rules are robust. They perform well with a variety of newer and more rigorous models and policy evaluation methods. Simple rules are also frequently more robust than fully optimal rules. Important progress has also been made in understanding how to adjust simple rules to deal with measurement error and expectations. Moreover, historical experience has shown that simple rules can work well in the real world in that macroeconomic performance has been better when central bank decisions were described by such rules. The recent financial crisis has not changed these conclusions, but it has stimulated important research on how policy rules should deal with asset bubbles and the zero bound on interest rates. Going forward the crisis has drawn attention to the importance of research on international monetary issues and on the implications of discretionary deviations from policy rules.  
  Address  
  Corporate Author Thesis  
  Publisher Federal Reserve Bank of San Francisco Place of Publication Editor  
  Language Summary Language Original Title  
  Series Editor Series Title Abbreviated Series Title  
  Series Volume Series Issue Edition  
  ISSN ISBN Medium  
  Area Expedition Conference  
  Notes Approved no  
  Call Number CEPREMAP @ michel.juillard @ RePEc:fip:fedfwp:2010-10 Serial 1112  
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