A Proposal to Clarify the Objectives and Strategy of Monetary Policy
Posted: 2 Dec 2016
Date Written: 2016-09-12
Academic economists have perennially made arguments for the conduct of monetary policy constrained by an explicit rule. These arguments have gone nowhere. This paper advances a proposal to clarify Fed objectives and strategy in order to facilitate discussion leading to consensus over a desirable rule. Economists are likely to have more success in their quest for a rule if they follow the indirect strategy of pushing the Fed for more transparency about the systematic character of policy.
JEL Classification: E52, E58
Suggested Citation: Suggested Citation