In old Chicago: Simons, Friedman and the development of monetary-policy rules

George Tavlas

No 177, Working Papers from Bank of Greece

Abstract: This paper examines the different policy rules proposed by Henry Simons, who, beginning in the mid-1930s, advocated a price-level stabilization rule, and by Milton Friedman, who, beginning in the late-1950s, advocated a rule that targeted a constant growth rate of the money supply. Although both rules shared the objective of eliminating the policy uncertainty emanating from discretion, they differed because of the different views of Simons and Friedman about the stability of secular relationships. Simons' rule relates to modern rules which emphasize the pursuit of price stability as representing optimal monetary policy.

Keywords: Milton Friedman; Henry Simons; monetary-policy rules (search for similar items in EconPapers)
JEL-codes: B22 E52 (search for similar items in EconPapers)
Pages: 35
Date: 2014-03
New Economics Papers: this item is included in nep-cba, nep-his, nep-hpe, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: In Old Chicago: Simons, Friedman, and the Development of Monetary‐Policy Rules (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:bog:wpaper:177

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