Modern Mirror

Involuntary Unemployment & NAIRU fairy tales

Kydland-Prescott: Rules Rather Than Discretion — Rule Based Monetary Policy is superior under rational expectations

Simple Rules for Monetary Policy — John Williams argues that simple Taylor rules work well under assumption of rational expectations.

Taylor Rule Testimony Before Congress — TR: MMOR=2+Inf(4Q)+(1/2)[GNP-Pot Gnp]+(1/2)[Inf(4Q)-Inf(2Q)] is reference rule. Deviations must be explained

Wiki Entry: Lucas Critique — Useful writeup