TY  - JOUR
AU  - Flood,Robert
AU  - Isard,Peter
TI  - Simple Rules, Discretion and Monetary Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2934
PY  - 1989
Y2  - April 1989
UR  - http://www.nber.org/papers/w2934
L1  - http://www.nber.org/papers/w2934.pdf
N1  - Author contact info:
Robert Flood
Notre Dame
E-Mail: rflood1@nd.edu

Peter Isard
AB  - 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.
ER  -