“Deviations from Rules-Based Policy and Their Effects,” Journal of Economic Dynamics and Control, 49. 14  This idea has been put forward by John B. Taylor. See, for example, Taylor J.B. (2015). “Getting back to a Rules-Based Monetary Strategy,” Speech given at the conference Getting Monetary Policy Back on Track, organized by the Shadow Open Market Committee Princeton Club, March.
This issue has also been highlighted by the European Commission, which is exploring ways to promote responsible lending in mortgage credit markets. 1 Socially responsible behaviour is key to creating sustainable value for all stakeholders. In the global and competitive financial markets of today, pressure for shortterm results may have a negative effect on incentives.