Most central banks conduct monetary policy by setting targets for overnight interest rates. During the 1990s, central banks have tended to move these interest rates in small steps without reversing direction quickly, a practice called interest rate smoothing. For example, the majority of Federal...

Summary of proceedings from the 1986 Fall Academic Conference sponsored by the Federal Reserve Bank of San Francisco

A history and analysis of the debate about whether monetary policy should be conducted by rules known in advance to all or by policymaker discretion.