Historical monetary policy analysis and the Taylor rule
By: Athanasios Orphanides.
Series: Finance and economics discussion series ;; 2003-36; Finance and economics discussion series (Online) ;; 2003-36.
Publisher: Federal Reserve Board
Published: 2003
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Subjects: Monetary policy -- United States -- History.
Description: "This study examines the usefulness of the Taylor-rule framework as an organizing device for describing the policy debate and evolution of monetary policy in the United States.  Monetary policy during the 1920s and since the 1951 Treasury-Federal Reserve Accord can be broadly interpreted in terms of this framework with rather surprising consistency.  In broad terms, during these periods policy has been generally formulated in a forward-looking manner with price stability and economic stability serving as implicit or explicit guides.  As early as the 1920s, measures of real economic activity relative to "normal" or "potential" supply appear to have influenced policy analysis and deliberations.  Confidence in such measures as guides for activist monetary policy proved counterproductive at times, resulting in excessive activism, such as during the Great Inflation and at the brink of the Great Depression.  Policy during the past two decades is broadly consistent with natural-growth targeting variants of the Taylor rule that exhibit less activism"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 7/23/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.