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Legislating a Rule for Monetary Policy

I discuss a proposal to legislate a rule for monetary policy. The proposal modernizes laws first passed in the late 1970s, but largely discarded in 2000. It would thereby restore reporting and accountability requirements for the instruments of monetary policy. It would limit but not eliminate discretion. The proposal provides a degree of control by the political authorities without interfering in the day-to-day operations of monetary policy.

John Taylor
Publication Date
July, 2011