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Full-Text Articles in Economic Theory
Paul Krugman And The Illusion Of The Illusion Of Conflict In International Trade, Spencer J. Pack
Paul Krugman And The Illusion Of The Illusion Of Conflict In International Trade, Spencer J. Pack
Economics Faculty Publications
No abstract provided.
Evaluating Mccallum's Rule For Monetary Policy, Dean D. Croushore, Tom Stark
Evaluating Mccallum's Rule For Monetary Policy, Dean D. Croushore, Tom Stark
Economics Faculty Publications
Some economists have proposed that the Federal Reserve follow a rigid rule for conducting monetary policy. A policy rule is a formula that tells the Fed how to set monetary policy. For example, in 1959 Milton Friedman argued that the Fed should increase the money supply a constant 4 percent each year to eliminate inflation and avoid destabilizing the economy. More recently, other economists have identified an additional benefit: a rule can eliminate the inflationary bias that could occur when discretionary monetary policy is used. Under a discretionary policy, decisions are made on a case-by-case basis.
But economists don't agree …