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How applicable is the Taylor Rule in today’s changing economic environment?

Tuesday, March 28, 2017

14:00 - 14:50 Ballroom 2

Speakers

Speakers

John B. Taylor

Professor of Economics, Stanford University and Senior Fellow, the Hoover Institution

How is the Taylor Rule – considered a benchmark for setting monetary policy – applicable in today's economic environment, which has seen persistently low interest rates and a mixed outlook for inflation? In what ways can central banks benefit from a rule that guides them on how to alter interest rates in response to changes in macroeconomic conditions, and what evidence exists that adopting a more erratic or ad-hoc policy – rather than a rules-based policy – accentuates challenges for the economy? A pioneer in developing new approaches to monetary policy, Professor Taylor will shed light on this key question for the investment community.