TY - BOOK ID - 137643055 TI - Money Growth Monitoring and the Taylor Rule AU - Christiano, Lawrence J. AU - Rostagno, Massimo. AU - National Bureau of Economic Research. PY - 2001 PB - Cambridge, Mass. National Bureau of Economic Research DB - UniCat UR - https://www.unicat.be/uniCat?func=search&query=sysid:137643055 AB - Using a series of examples, we review the various ways in which a monetary policy characterized by the Taylor rule can inject volatility into the economy. In the examples, a particular modification to the Taylor rule can reduce or even entirely eliminate the problems. Under the modified policy, the central bank monitors the money growth rate and commits to abandoning the Taylor rule in favor of a money growth rule in case money growth passes outside a particular monitoring range. ER -