Plosser wants Fed to follow ‘rule-like’ monetary policy
Philadelphia Fed president advocates constrained discretion
Charles Plosser, president of the Federal Reserve Bank of Philadelphia, on Friday called for Fed policy-makers to be constrained by a more "rule-like" monetary policy.
In a speech to the Society of American Business Editors at City University of New York, Plosser said a considerable volume of research has extolled the benefits of a rules-based monetary policy – including that of Finn Kydland and Edward Prescott, who won the Nobel Prize in Economics in 2004 for their work on time inconsistency.
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