Monetary Rules for a Post-Crisis World

Central banks' part in the Great Recession, and the lackluster recovery since, are reviving interest in monetary rules. That revival raises crucial questions. Might the Federal Reserve and other central banks have performed better if they’d adhered to monetary policy rules? Could rules have avoided the crisis altogether? Can they avoid future crises? If so, which rules work best? Can a monetary policy rule work even in a world of near-zero, or negative, interest rates?

On September 7, the Mercatus Center at George Mason University and the Cato Institute’s Center for Monetary and Financial Alternatives will team up for a day-long academic conference, hosting a distinguished group of scholars, to explore these pressing questions about monetary policy rules.

Four panels will discuss: 

• The Evolving Case for Monetary Rules
• Monetary Rules and Monetary Stability
• Monetary Rules and Emergency Lending
• Monetary Rules in Light of the CrisisCentral banks' part in the Great Recession, and the lackluster recovery since, are reviving interest in monetary rules. That revival raises crucial questions. Might the Federal Reserve and other central banks have performed better if they’d adhered to monetary policy rules? Could rules have avoided the crisis altogether? Can they avoid future crises? If so, which rules work best? Can a monetary policy rule work even in a world of near-zero, or negative, interest rates?