Search Results for: Policy rules
Policy Rules When Money Still Matters
In an interesting recent paper and blog post “Money Still Matters,” Michael Belongia and Peter Ireland report new empirical results with relevance to monetary policy. They show that the Divisia index of the money supply (not M1 or M2) has effects on … Continue reading
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Where Do Policy Rules Come From?
I recently read Steve Williamson’s interpretation of what I was and was not claiming when I wrote my 1992 paper on what would come to be called the Taylor rule. It’s quite a while ago, but I have a different … Continue reading
Posted in Monetary Policy, Teaching Economics
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Short Course on Policy Rules–Including Yellen’s Variant
In a recent interesting article, “The Yellen Fed? Precise and Predictable,” Catherine Rampell assesses Janet Yellen along the discretion/rules-based dimension rather than the hawk/dove dimension which so many others have focused on. Quoting several people, including me, the article suggests … Continue reading
Posted in Monetary Policy, Teaching Economics
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References to Policy Rules in a Speech by the Fed Vice Chair
In a speech to the Money Marketeers in New York City this past week, Fed Vice Chair Janet Yellen gave a useful description of how she and other policy makers are thinking analytically about monetary policy. The speech referred extensively … Continue reading
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Misunderstanding Prescriptive Versus Descriptive Monetary Policy Rules
Monetary policy rules can be used both for prescriptive and descriptive purposes, but it’s important to be clear about which purpose one has in mind. A policy rule estimated over a period which included the Great Inflation of the 1970s, … Continue reading
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From Woodford to DeLong On Monetary Policy Rules
Surprisingly, the Taylor rule was referred to more frequently than ever in 2009. According to Google Scholar more articles referred to it than in any year since 1993 when John Lipsky, now First Deputy Managing Director at the IMF, first … Continue reading
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Speaking of Monetary Policy Rules
This was another week with a lot of commentary on the Taylor Rule, and I am grateful to Jon Hilsenrath of the Wall Street Journal for suggesting an interview with me on the subject and posting it on Wednesday. He … Continue reading
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Rules are Back In The Monetary Policy Report
Last March, I quoted Federal Reserve Chair Jerome Powell on this Economics One blog post https://economicsone.com/2022/03/03/well-have-it-in-the-next-one-well-bring-them-back-for-the-july-said-chair-powell-at-the-house-yesterday-and-at-the-senate-today/ from his March 2 and March 3 testimony at the House and Senate that “WE’LL HAVE IT IN THE NEXT ONE.” He was responding … Continue reading
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Rules Are Back In The Fed’s Monetary Policy Report
The Federal Reserve’s latest Monetary Policy Report just released on February 19, 2021 has a whole section on monetary policy rules. That policy rules are back in the Report is a very welcome development. It re-initiates a helpful reporting approach … Continue reading
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Rules and Strategies in the Fed’s New Monetary Policy Report
The Fed’s Monetary Policy Report released last Friday devotes a lot of space to monetary policy rules. This is the third time in a row that the monetary policy report has included such discussions, the first being in July 2017 … Continue reading
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Economics One 