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Research Events
John Taylor's Contributions to Monetary Theory and Policy
Federal Reserve Bank of Dallas
October 12–13, 2007
Organizers:
Lawrence Christiano, Northwestern University
Evan F. Koenig, Federal Reserve Bank of Dallas
Robert Leeson, Hoover Institution and Stanford University
Andrew Levin, Federal Reserve Board
John Taylor has had an enormous impact on how we think about monetary policy and the channels through which it affects the economy. His notion of a trade-off between the variability of inflation and of output (the Taylor Curve), his approach to modeling nominal rigidities (Taylor contracts), and his characterization of how policy has been and ought to be conducted (the Taylor Rule and associated Taylor Principle) have each had an influence that has proven to be enduring and pervasive. These and other contributions were the subject of a conference that was hosted by the Federal Reserve Bank of Dallas on October 12 and 13, 2007.
Agenda
| Friday, October 12 | |
8:10 a.m. |
Opening Remarks  Fed Chairman Ben S. Bernanke (videoconference) |
8:25 a.m. |
Welcome |
8:30 a.m. |
Looking Back: Historical Perspective on Policy Rules |
Monetary Policy Rules from Adam Smith to Taylor |
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Friedman and Taylor on Monetary Policy Rules: A Comparison |
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9:15 a.m. |
Staggered Wage/Price Setting and Nominal Rigidities |
Two Versions of John Taylor's Model of Nominal Price Adjustments |
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New Micro Evidence on Price Rigidities |
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Presentation |
|
11:00 a.m. |
The Design of Monetary Policy |
Optimal Monetary Policy in a Model with Distinct Core and Headline Inflation Rates |
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Macroeconometric Equivalence, Microeconomic Dissonance, and the Design of Monetary Policy |
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Presentation |
|
12:30 p.m. |
Lunch |
1:45 p.m. |
Globalization and Monetary Policy |
Reflections on Monetary Policy Choices in the Open Economy: Implications from an Optimizing Model |
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Worldwide Macroeconomic Stability and Monetary Policy Rules |
|
Presentation |
|
3:30 p.m. |
Policy Rules and Financial Markets |
Examining the Bond Premium Puzzle with a DSGE Model |
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Taylor Rules with Real-Time Data: A Tale of Two Countries and One Exchange Rate |
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Commentator: Monika Piazzesi |
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5:00 p.m. |
Policy Roundtable |
Rules and Discretion |
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John Taylor and the Theory and Practice of Central Banking—Some Reflections |
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Guillermo Ortiz |
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Policymakers Roundtable  Janet Yellen |
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Moderator: Richard W. Fisher |
|
6:30 p.m. |
Reception |
7:00 p.m. |
Dinner |
John Taylor Rules |
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Saturday, October 13 |
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8:30 a.m. |
Learning and Uncertainty |
Central Bank Misperceptions and the Role of Money in Interest-Rate Rules |
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Learning, Expectations Formation, and the Pitfalls of Optimal Control Monetary Policy |
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Fiscal and Monetary Policy Interactions |
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10:30 a.m. |
Wage and Price Contracts and Bargaining |
Equilibrium Sticky Prices |
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Minimally Altruistic Wages and Unemployment in a Matching Model |
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Presentation |
|
Noon |
Looking Ahead |
Forecast Targeting as a Monetary Policy Strategy: Policy Rules in Practice |
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The Dual Nature of Forecast Targeting and Instrument Rules: A Comment on Michael Woodford’s “Forecast Targeting as a Monetary Policy Strategy: Policy Rules in Practice” |
|
12:45 p.m. |
Lunch and Adjourn |
Remarks by John Lipsky |
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