This paper considers the desirability of the observed tendency of central banks to adjust interest rates only gradually … function that penalizes inflation variations, deviations of output from potential, and interest-rate variability. Sluggish … reputationless (Markovian) equilibrium under discretion. Optimal interest-rate feedback rules are also characterized, and shown to …

empirical evidence. The core channels of policy transmission -- the neoclassical links between short-term policy interest rates …, other asset prices such as long-term interest rates, equity prices, and the exchange rate, and the consequent effects on … policy interest rates with activity in the United States. Regulatory effects on credit provision have also changed …

This paper focuses on simple normative rules for monetary policy that central banks can use to guide their interest … important research on how policy rules should deal with asset bubbles and the zero bound on interest rates. Going forward, the …

monetary policy behavior can benefit from including both interest rates and money in the empirical analysis. …