Getting rules into policymakers’ hands: a review of rules-based macro policy | University of Oxford

Getting rules into policymakers’ hands: a review of rules-based macro policy

Speaker
Mario Marcel Cullell, Governor of the Central Bank of Chile
Event date
Event time
12:00 - 13:00
Venue
Blavatnik School of Government
Radcliffe Observatory Quarter
Woodstock Road
Oxford
Oxfordshire
OX2 6GG
Event type
Lectures and seminars
Event cost
Free
Disabled access?
Yes
Booking required
Required

Macroeconomic policy decisions have profound implications for our economies, and there is a long-running debate among economists as to whether these decisions should follow pre-defined rules or be left to the discretion of policymakers. Following rules provides reduced economic uncertainty, because the economic actors are able to form expectations as to how policymakers will behave. But how do we know which rules are the ‘right’ ones? And are policymakers able to credibly commit to sticking to the rules? The argument for discretion is that it allows policymakers wide latitude to design the best policy response for the given circumstances. But is this the best policy?