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Modernizing Monetary Policy Rules: a presentation a t the Economic Club of Memphis, Memphis, Tenn

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Abstract

During his talk, Bullard discussed modernizing a popular monetary policy rule, a version of the Taylor rule, whose construction was based on U.S. data from the 1980s and 1990s. Since then, he noted, three important macroeconomic developments have altered key elements of policy rule construction. These developments are lower short-term real interest rates, the disappearing Phillips curve and better measures of inflation expectations. ?Incorporating these developments yields a modernized policy rule that suggests the current level of the policy rate is about right over the forecast horizon,? Bullard said.

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  • James B. Bullard, 2018. "Modernizing Monetary Policy Rules: a presentation a t the Economic Club of Memphis, Memphis, Tenn," Speech 324, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:fedlps:324
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    Cited by:

    1. Kevin L. Kliesen, 2019. "Is the Fed Following a “Modernized” Version of the Taylor Rule? Part 2," Economic Synopses, Federal Reserve Bank of St. Louis, issue 3, pages 1-3.
    2. Shodipe Oladimeji T. & Shobande Olatunji Abdul, 2021. "Monetary Policy Dynamics in the United States," Open Economics, De Gruyter, vol. 4(1), pages 14-30, January.
    3. Kevin L. Kliesen, 2019. "Is the Fed Following a “Modernized” Version of the Taylor Rule? Part 1," Economic Synopses, Federal Reserve Bank of St. Louis, issue 2, pages 1-2.

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