Magazine article from our research archive:

The Taylor rule: Is it a useful guide to understanding monetary policy?

More than anyone else in the decade of the 1990s, John Taylor spurred research into the nature of the monetary policy pursued by the Federal Reserve System. Taylor has advanced a simple and intuitive reason for why the Fed has done a better job of controlling inflation since the early 1980s: It has raised the funds rate more aggressively in response to inflation. This article suggests a different perspective. The question should be how the Fed prevents inflation from arising in the first place, not how vigorously it responds to observed inflation.

1. TAYLOR'S RESEARCH AGENDA

Indisputably, the behavior of inflation improved in the 1980s under the leadership of Paul Volcker as chairman of ...

Related newspaper, magazine, and journal articles:

See all results. Or, try our Advanced Search.

Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 60 million articles! Access over 3,500 publications with a FREE trial!