The importance of rules-based monetary policy in practice

George P. Shultz

Journal of Economic Dynamics and Control, 2014, vol. 49, issue C, 142-143

Abstract: This paper draws on several actual policy experiences of the author to demonstrate why it is important to have a rules-based monetary policy. These experiences show that policy rules provide a needed “steady as you go” strategy and serve as an insurance against excessive intervention. They also show why in practice one must consider rules-based policy in the broader policy context in which the Federal Reserve operates.

Keywords: Monetary policy; Taylor rule; Bailout; Wage and price controls (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:49:y:2014:i:c:p:142-143

DOI: 10.1016/j.jedc.2014.09.012

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