Please answer the following question in a short paragraph with few sentences.
1. These two articles are about “Rule vs. Discretion in monetary policy” debate that have been continued over decades. Please read the articles and find the pros and cons of discretion in monetary policy.
Bernanke (2015), “The Taylor Rule: A benchmark for monetary policy?”
http://www.brookings.edu/blogs/ben-bernanke/posts/2015/04/28-taylor-rule-monetary-policy
Taylor (2015), “Taylor on Bernanke: Monetary Rules Work Better Than “Constrained Discretion”
http://www.wsj.com/articles/taylor-on-bernanke-monetary-rules-work-better-than-constrained-discretion-1430607377
2. This blog shows the actual Fed. rate and simulated one with the Taylor rule. When did the Taylor Rule predict the actual Fed. rate and when did not. What events can affect the deviation of the actual rate from the expectation with the Taylor Rule?
The FRED blog about the Taylor Rule: https://fredblog.stlouisfed.org/2014/04/the-taylor-rule/ (Links to an external site.)
