Taylor Rule II Shows Which Fed Policies Work Best:

Amity Shlaes

Amity Shlaes  "Taylor Rule II doesn’t have math. And it doesn’t say what the Fed should do. It predicts what the central bank will do. [Economist John]Taylor says a period of less Fed intervention and stable strong growth will come, along with a strengthening dollar. But by the time this happens, [Chinese leader] Hu, now 68, might be approaching 80.
"Taylor studied the past 60 years of U.S. policy, and found that the Fed moves in a pendulum pattern, swinging back and forth between discretion-based decisions and loose money on one hand and rules-based choices and tighter money on the other."