Fischer attacks ‘mechanical’ use of policy rules
Fed vice-chair says policy committees have strengths that rule-following lacks
Federal Reserve vice-chairman Stanley Fischer has warned against the mechanical application of monetary policy rules, saying that monetary policy committees are a better framework for setting interest rates.
Fischer was speaking at a conference at the Hoover Institution at Stanford University on May 5, in a session chaired by Stanford economist John Taylor. The latter’s most famous contribution to the literature on monetary policy was his formulation of the “Taylor rule” in a 1993 paper
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