Abstract
Taylor rules are simple monetary policy rules that prescribe how a central bank should adjust its interest rate policy instrument in a systematic manner in response to developments in inflation and macroeconomic activity. They provide a useful framework for the analysis of historical policy and for the econometric evaluation of specific alternative strategies that a central bank can use as the basis for its interest rate decisions.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
Bibliography
Bryant, R.C., Hooper, P. and Mann, C, eds. 1993. Evaluating Policy Regimes: New Research in Empirical Macroeconomics. Washington DC: Brookings.
Clarida, R., Gali, J. and Gertler, M. 1999. The science of monetary policy. Journal of Economic Literature 37, 1661–707.
Clarida, R. and Gertler, M. 1997. How the Bundesbank conducts monetary policy. In Reducing Inflation: Motivation and Strategy, ed. C. Romer and D. Romer. Chicago: University of Chicago Press.
Cooper, J.P. and Fischer, S. 1972. Simulations of monetary rules in the FRB-MIT-Penn model. Journal of Money, Credit and Banking 4, 384–96.
Friedman, M. 1960. A Program for Monetary Stability. New York: Fordham University Press.
Friedman, M. 1968. The role of monetary policy. American Economic Review 58, 1–17.
Levin, A., Wieland, V. and Williams, J.C. 2003. The performance of forecast-based monetary policy rules under model uncertainty. American Economic Review 93, 622–45.
McCallum, B.T 1988. Robustness properties of a rule for monetary policy. Carnegie-Rochester Conference Series on Public Policy 29, 173–203.
McCallum, B.T. 1993. Specification and analysis of a monetary policy rule for Japan. Bank of Japan Monetary and Economic Studies 11(2), 1–45.
Orphanides, A. 2001. Monetary policy rules based on real-time data. American Economic Review 91, 964–85.
Orphanides, A. 2003a. Monetary policy evaluation with noisy information. Journal of Monetary Economics 50, 605–31.
Orphanides, A. 2003b. Historical monetary policy analysis and the Taylor rule. Journal of Monetary Economics 50, 983–1022.
Orphanides, A. and Wieland, V. 2000. Efficient monetary policy design near price stability. Journal of the Japanese and International Economies 14, 327–65.
Orphanides, A. and Williams, J.C. 2002. Robust monetary policy rules with unknown natural rates. Brookings Papers on Economic Activity 2002(2), 63–145.
Orphanides, A. and Williams, J.C. 2007. Inflation targeting under imperfect knowledge. In Monetary Policy under Inflation Targeting, ed. F. Mishkin and K. Schmidt-Hebbel. Santiago: Central Bank of Chile.
Simons, H.C. 1936. Rules vs authorities in monetary policy. Journal of Political Economy 44, 1–30.
Snyder, C. 1935. The problem of monetary and economic stability. Quarterly Journal of Economics 49, 173–205.
Taylor, J.B. 1993. Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy 39, 195–214.
Taylor, J.B., ed. 1999. Monetary Policy Rules. Chicago: University of Chicago.
Wicksell, K. 1898. Interest and Prices. Trans. R.F. Kahn, London: Macmillan, 1936.
Woodford, M. 2003. Interest and Prices: Foundations of a Theory of Monetary Policy. Princeton: Princeton University Press.
Editor information
Editors and Affiliations
Copyright information
© 2010 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
Orphanides, A. (2010). Taylor rules. In: Durlauf, S.N., Blume, L.E. (eds) Monetary Economics. The New Palgrave Economics Collection. Palgrave Macmillan, London. https://doi.org/10.1057/9780230280854_39
Download citation
DOI: https://doi.org/10.1057/9780230280854_39
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-230-23888-6
Online ISBN: 978-0-230-28085-4
eBook Packages: Palgrave Media & Culture CollectionLiterature, Cultural and Media Studies (R0)