A staff presentation summarized research on the efficacy of alternative simple monetary policy rules in fostering the Federal Reserve’s monetary policy objectives of maximum employment and price stability. The presentation reviewed the characteristics of a variety of rules and noted a number of reasons why current conditions might warrant deviating from the prescriptions of simple rules designed for more normal times. The presentation also discussed how simple rules might be used as part of a comprehensive policy framework to provide clear and transparent benchmarks for monetary policy decisionmaking and the ... (full story)