for release on delivery 11 : 30 a. m. edt ( 8 : 30 a. m. pdt ) may 5, 2017 committee decisions and monetary policy rules remarks by stanley fischer vice chairman board of governors of the federal reserve system at “ the structural foundations of monetary policy, ” a hoover institution monetary policy conference stanford university stanford, california may 5, 2017 it is a pleasure to be at the hoover institution again. i was privileged to be a visiting scholar here from 1981 to 1982. in addition, many of the researchers and practitioners with whom i have discussed monetary policy over the years have had affiliations with the hoover institution - - including several people here today. it is a pleasure also to have been invited to speak at this hoover institution monetary policy conference, for the hoover conference series provides a valuable forum for policymakers and researchers to engage in dialogue about important monetary policy issues facing the united states and other countries. today i will offer some observations on monetary policy rules and their place in decisionmaking by the federal open market committee ( fomc ). 1 i have two messages. first, policymakers should consult the prescriptions of policy rules, but - - almost needless to say - - they should avoid applying them mechanically. second, policymaking committees have strengths that policy rules lack. in particular, committees are an efficient means of aggregating a wide variety of information and perspectives. monetary policy rules in research and policy since may 2014, i have considered monetary policy rules from the vantage point of a member of the fomc. but my interest in them began many years ago and was reflected in some of my earliest publications. 2 at that time, the literature on monetary policy rules, especially in the united states, remained predominantly concerned with the money stock or total bank reserves rather than the short - term interest rate. 3 seen with the views expressed in this presentation are my own and not necessarily the views of the federal reserve board or the federal open market committee. i am grateful to ed nelson of the federal reserve board for his assistance. see, for example, cooper and fischer ( 1972 ). there was, however, a long tradition of monetary analysis in the united kingdom and continental europe that was centered on the authorities ’ use of the interest rate as an instrument. see especially keynes and wicksell ( 1936 ). in the post - world war ii decades, this tradition continued in the u. k. research - 2benefit of hindsight, that emphasis probably derived

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