A Wall Street Journal piece on making Federal Reserve monetary policy on a simple rule
The requirement would be based on the Taylor Rule
– In 1993 economist John Taylor inferred a formula for how Paul Volcker and Alan Greenspan set interest rates from 1987 to 1992
Opponents of introducing this rules-based policy say no rule can anticipate all the shocks and economic changes the Fed is likely to encounter
Here’s why a simple rules-based Fed monetary policy wouldn’t work. Do you agree?
