Christiano, Lawrence J. <br/><br/>
Money Growth Monitoring and the Taylor Rule / 
Lawrence J. Christiano, Massimo Rostagno. 
 - Cambridge, Mass.  National Bureau of Economic Research  2001. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w8539 .
 - Working Paper Series (National Bureau of Economic Research)  no. w8539. .
<br/><br/> October 2001. 
<br/><br/> Using a series of examples, we review the various ways in which a monetary policy characterized by the Taylor rule can inject volatility into the economy.  In the examples, a particular modification to the Taylor rule can reduce or even entirely eliminate the problems.  Under the modified policy, the central bank monitors the money growth rate and commits to abandoning the Taylor rule in favor of a money growth rule in case money growth passes outside a particular monitoring range. 
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