You want a rule?

Posted: 15 July 2012 in Uncategorized
Tags: , , , ,

Do you want a rule, John Taylor?

How about this one:

The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.

Does Taylor’s preference for rules, which he considers to be “one of the most important lessons of modern macroeconomics,” fulfill the legal requirement to promote maximum employment?

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