Who’s Afraid of Rules-Based Monetary Policy?

When I first developed the Taylor rule, which has been widely discussed for three decades now, I based it on an average inflation rate

A decade ago, I wrote a paper with John C. Williams, now the president of the Federal Reserve Bank of New York, titled “Simple and Robust Rules for Monetary Policy,” in which we emphasized the importance of rules-based policymaking

John B. Taylor Project Syndicate 16 October 2020

https://www.project-syndicate.org/commentary/fed-average-inflation-targeting-should-still-be-rules-based-by-john-taylor-5-2020-10

Federal Reserve is keeping the federal funds rate in a range far below what its own monetary-policy rules would prescribe. But since history shows that this deviation cannot last indefinitely, it would be better to normalize sooner rather than later.

https://www.project-syndicate.org/commentary/fed-interest-rate-policy-deviation-from-monetary-policy-rule-by-john-taylor-5-2021-08

The Taylor Rule

https://www.internetional.se/taylor.html