Specifically, researchers have attempted to identify particular simple feedback policies that lead to good economic outcomes when applied to a range of alternative economic models (McCallum, 1988; Taylor, 1999; Orphanides and Williams, 2002; Levin and Williams, 2003). As it turns out, simple feedback policies that produce good results in a variety of simulated economic environments - so-called robust policies can often be found.
Proponents of simple feedback policies argue that, as we are far from certain about which of many possible economic models provides the best description of the U.S. economy, the safest course is to adopt one of these robust feedback policies, modified as necessary by policymakers’ insight and judgment, and to stick with it.6 The use of simple feedback policies also addresses to some degree the complications raised by the role of private-sector expectations.