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"In Central Bank Governance and Oversight Reform, the distinguished contributors tackle this and a range of other key questions surrounding the balance of central bank authority with accountability and constraints. They discuss the conflicting public attitudes towards the Fed. The authors...
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that simple rules can work well in the real world in that macroeconomic performance has been better when central bank …
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natural rate and large real-time errors in estimates of the natural rate uprooted heretofore quiescent inflation expectations … and destabilized the economy. Had monetary policy reacted less aggressively to perceived unemployment gaps, inflation … activist policies would have been more effective at stabilizing both inflation and unemployment. We argue that policymakers …
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