NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Simple Rules, Discretion and Monetary Policy

Robert Flood, Peter Isard

NBER Working Paper No. 2934
Issued in April 1989
NBER Program(s):   ITI   IFM

In this paper we explore the possibilities arising under a policy in which a partially state contingent money-supply rule is mixed with discretion. In addition to demonstrating that such mixed strategies can dominate both complete discretion and rigid adherence to the partially state contingent rule, we investigate the appropriate setting of parameters in a partially state contingent policy when it is acknowledged that the rule will not be followed on all occasions--i.e., that sometimes the monetary authority will resort to discretion.

download in pdf format
   (140 K)

download in djvu format
   (115 K)

email paper

This paper is available as PDF (140 K) or DjVu (115 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2934

Users who downloaded this paper also downloaded these:
Fischer w2518 Rules Versus Discretion in Monetary Policy
Flood and Isard w2770 Monetary Policy Strategies
Barro and Gordon w1079 Rules, Discretion and Reputation in a Model of Monetary Policy
Barro w1473 Rules versus Discretion
Lucas Rules, Discretion, and the Role of the Economic Advisor
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us