Some form of rule-based thinking about the interest-rate instrument — beyond a pure inflation target, perhaps something specifying movements of the instruments — is a productive way to constrain the Fed; policy rules served as good guidelines historically, don't need to be perfect, but are hard to legislate.

normativepending

Speaker

John Taylor

Evidence Quote

I do think that some kind of rule based thinking about the interest rate or whoever their interest instrument happens to be when we're out of this it is a productive way to think about things... you don't have to be perfect but they do help I think it's hard to legislate that but you could imagine some kind of something a little more if you like then it's a pure inflation target

Source

John Taylor on the Financial Crisis 07/20/2009EconTalk
Created: 6/15/2026, 9:20:12 AM

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