TY - CHAP
T1 - Monetary Policy Rules: From Adam Smith to John Taylor
AU - Asso, Pier Francesco
PY - 2012
Y1 - 2012
N2 - We describe, through the lenses of history, the intellectual origins of the Taylor rule. The Taylor rule was an important component of the transformation that swept through the monetary policy landascape in a remarkable few years following the abandonment of monetary targeting. In this long paper we provide an original overview of the long-dated debate on rules vs discretion in monetary policy, ever since Adam Smith and the monetary controversies of the XIX century. We then analyse in greater detail the debates in the interwar years (Wicksell, Keynes, Cassel, Simons, Fisher) and the debates in the 1950s and 1960s (Phillips, Friedman, the rational expectation hipothesis) and how these debates came to influence the elaboration of the Taylor rule.
AB - We describe, through the lenses of history, the intellectual origins of the Taylor rule. The Taylor rule was an important component of the transformation that swept through the monetary policy landascape in a remarkable few years following the abandonment of monetary targeting. In this long paper we provide an original overview of the long-dated debate on rules vs discretion in monetary policy, ever since Adam Smith and the monetary controversies of the XIX century. We then analyse in greater detail the debates in the interwar years (Wicksell, Keynes, Cassel, Simons, Fisher) and the debates in the 1950s and 1960s (Phillips, Friedman, the rational expectation hipothesis) and how these debates came to influence the elaboration of the Taylor rule.
UR - http://hdl.handle.net/10447/77976
M3 - Chapter
SN - 978-0-8179-1404-2
T3 - Hoover Institution Press Publication
SP - 3
EP - 62
BT - The Taylor Rule and the Transformation of Monetary Policy
ER -