The Economic Case for Monetary Policy Rules
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.