In a recent blog post Paul Krugman talks a lot about policy rules and the Taylor rule in particular.
He complains that “Republicans are pushing to mandate that the Fed follow the so-called Taylor rule.” But the policy rule legislation that has come out of Congress recently would simply require the Fed to describe a rule or strategy of its own choosing, not follow any specific rule. The legislation refers to a policy rule that I invented, but simply as a “reference rule,” not a “mandated rule.” Fed officials have been referring to that rule for many years as a benchmark, or as an example, or simply as a framework to argue for change, such as a lowering of the equilibrium real interest rate in that rule. Such references reflect standard practice for the Fed.
Krugman talks about the history of the Taylor rule. He does not dispute that monetary…
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Utopia, you are standing in it! 
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