Discussion of George W. Evans and Seppo Honkapohja, “Monetary Policy, Expectations and Commitment,” AEA Annual Meeting, Washington, Jan 5, 2003.
Discussion of Frank Smets and Raf Wouters, “Output Gaps: Theory versus Practice,” AEA Annual Meeting, Washington, Jan 4, 2003.
Discussion of Guenther W. Beck and Volker Wieland, “Learning, Stabilization and Credibility: Optimal Monetary Policy in a Changing Economy,” AEA Annual Meeting, Washington, Jan 4, 2003.
New revision and acceptance: “What Is Wrong with Taylor Rules? Using Judgment in Monetary Policy through Targeting Rules,” Version 3.1, Jan 2003, Journal of Economic Literature, forthcoming. This revision now includes a discussion of the proposal that instrument rules, like the Taylor rule, are not meant to be followed mechanically but to be mere “guidelines” for monetary policy. The proposal is found to be too vague to be operational.
New debate piece: “Sverige, valutaunionen och penningpolitiken” (“Sweden, the EMU, and Monetary Policy,” in Swedish), Ekonomisk Debatt 31-4 (2003) 50-52.
New publication: “What Is Wrong with Taylor Rules? Using Judgment in Monetary Policy through Targeting Rules,” Journal of Economic Literature 41 (2003) 426-477.
New book: Michael Woodford’s landmark book, Interest Rates and Prices: Foundations of a Theory of Monetary Policy, has just been published by Princeton University Press.
New publication: “Escaping from a Liquidity Trap and Deflation: The Foolproof Way and Others,” Journal of Economic Perspectives 17-4 (Fall 2003) 145-166.