He suggested that, ultimately, the FOMC could arrive at a simple rule that would serve as a good benchmark to guide policy. My colleague certainly lays out an impressive work program for the Board’s cadre of Ph.D. economists.
However, I tend to agree with John Taylor and my Fed colleague John Williams when they write that “the search for better and more robust policy rules is never done. "14 My take is that rules are extremely useful reference tools, but they are likely to work best as inputs into a committee decision. Why? Let me reiterate some points I made in Warwick.