Of Rules And Slack, And The Real Rule of Slack

By |2017-09-06T17:49:53-04:00September 6th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In 1993, Stanford economist John B. Taylor wrote an influential paper that introduced the economics profession (statisticians, almost all) to what was later called the Taylor Rule. The need for such a “rule” was an unspoken outgrowth of monetary evolution. In the 1960’s and 1970’s long-established regression models estimating the influence of then-defined money on economic variables had broken down [...]