The Economic Case for Monetary Policy Rules

Special Event
March 30, 2015
3:00PM to 4:30PM
538 Dirksen Senate Office Building
Featuring Christopher J. Waller, Senior Vice President and Director of Research, Federal Reserve Bank of St. Louis on the Taylor Rule; Bennett T. McCallum, H. J. Heinz Professor of Economics, Tepper School of Business, Carnegie Mellon University on the McCallum Rule; Scott Sumner, Director, Program on Monetary Policy, Mercatus Center and Professor of Economics, Bentley University on NGDP Targeting; with an introduction to rules-based monetary policy by Norbert J. Michel, Research Fellow in Financial Regulations, The Heritage Foundation, and welcoming remarks by George Selgin, Director, Center for Monetary and Financial Alternatives, Cato Institute.

The Federal Reserve Accountability and Transparency (FRAT) Act, introduced in the 113th Congress, would have required the Federal Reserve to adopt a monetary policy rule. A new version of that bill will almost certainly be introduced in the 114th Congress. Could an unchanging monetary policy rule actually improve upon discretionary monetary policy? Many economists believe so, and several have proposed specific rules that each claims would foster greater economic stability than the Fed’s current procedures.

Please join us as three leading experts discuss the workings and advantages of various monetary policy rules.

Presented by the Cato Institute’s Center for Monetary and Financial Alternatives and The Heritage Foundation.