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Applying Academic Research on Monetary Policy Rules: An Exercise in Translational Economics
Author(s) -
Taylor John B.
Publication year - 1998
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.66.s.1
Subject(s) - monetary policy , economics , process (computing) , simple (philosophy) , macroeconomics , forward guidance , public economics , positive economics , credit channel , inflation targeting , computer science , philosophy , epistemology , operating system
Recent progress in the practical application of research on monetary policy rules in the United States during the 1990s is examined. The paper focuses on how simple policy rules that describe how the central bank’s interest rate responds to the economy have provided a useful framework for actual decision making. It is argued that the process by which economic research is put into practice—called translational economics—is fascinating and worthy of careful study in general; several recent examples from research on monetary policy rules are offered to show why.