Is the Fed Too Thin? Monetary Policy in an Uncertain World

Download or read book Is the Fed Too Thin? Monetary Policy in an Uncertain World written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Federal Reserve Bank of San Francisco presents the full text of an article entitled "Is the Fed Too Thin? Monetary Policy in an Uncertain World," by Glenn D. Rudebusch. Estimates of the Taylor rule suggest that monetary policy in the United States can be characterized as having reacted in a moderate fashion to output and inflation gaps. The article discusses an attempt to match the historical policy rule with an optimal policy rule by incorporating uncertainty into the derivation of the optimal rule and by examining plausible variations in the policymaker's model and preferences.