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The Taylor rule and the transformation of monetary policy

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Listed:
  • Pier Francesco Asso
  • George A. Kahn
  • Robert Leeson

Abstract

This paper examines the intellectual history of the Taylor Rule and its considerable influence on macroeconomic research and monetary policy. The paper traces the historical antecedents to the Taylor rule, emphasizing the contributions of three prominent advocates of rules--Henry Simons, A.W. H. Phillips, and Milton Friedman. The paper then examines the evolution of John Taylor's thinking as an academic and policy advisor leading up to his formulation of the Taylor rule. Finally, the paper documents the influence of the Taylor rule on macroeconomic research and the Federal Reserve's conduct of monetary policy.

Suggested Citation

  • Pier Francesco Asso & George A. Kahn & Robert Leeson, 2007. "The Taylor rule and the transformation of monetary policy," Research Working Paper RWP 07-11, Federal Reserve Bank of Kansas City.
    • Handle: RePEc:fip:fedkrw:rwp07-11
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    File URL: https://www.kansascityfed.org/documents/541/pdf-rwp07-11.pdf
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    References listed on IDEAS

    as
    1. Ben Bernanke & Frederic Mishkin, 1992. "Central Bank Behavior and the Strategy of Monetary Policy: Observations from Six Industrialized Countries," NBER Chapters, in: NBER Macroeconomics Annual 1992, Volume 7, pages 183-238, National Bureau of Economic Research, Inc.
    2. Taylor, John B, 1989. "The Evolution of Ideas in Macroeconomics," The Economic Record, The Economic Society of Australia, vol. 65(189), pages 185-189, June.
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    Keywords

    Taylor's rule; Taylor; John B.; Simons; Henry; Phillips; A.W.H.; Friedman; Milton; Monetary policy;
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