I am particularly honored to be on a panel with my colleague John Williams, whose research in this area has been an important influence on my views, as well as Tom Sargent. In Tom’s case, there probably isn’t an economist in this room who hasn’t been influenced by his work and his contributions to economics.
But before I go any further, I should begin with the usual disclaimer that my views are my own and do not necessarily reflect those of the Federal Reserve System or my colleagues on the Federal Open Market Committee (FOMC). The theoretical justification for rules The theory part of this session’s title is well established.