Number: RL31050
Title: Formulation of Monetary Policy by the Federal Reserve: Rules vs. Discretion
Authors: Marc Labonte, Government and Finance Division 
Abstract: This report explores the historical evolution of policy rules and the arguments employed for and against a rule-based policy regime. Some Members of Congress have expressed a dissatisfaction with the Fed's use of discretion, and have sought alternative policy options. Rules offer one alternative, but may have costs of their own worth considering.
Pages: 30
Date: Updated July 19, 2001