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November 27, 2012

To celebrate the twentieth anniversary of a rule that transformed monetary policy, the Taylor Rule (the book) is now near zero lower bound with forward guidance

Twentieth anniversary of a rule that transformed monetary policy
Twentieth anniversary of a rule that transformed monetary policy.

Twenty years ago, at a conference in Pittsburgh, Hoover fellow John Taylor first presented what is now called the Taylor rule (November 1992, Stanford working paper). Then it was difficult to predict those ideas that would be picked up by policy makers and those that would not; no one could have  predicted in 1992 that the Fed and other central bankers would still be applying the rule in 2012. Today we know that the Taylor rule proliferated through academia to the trading floors of Wall Street and to the Federal Reserve's boardroom in Washington. Two decades later, the Taylor rule remains a focus for discussions of monetary policy around the world.

Like the Fed, the Hoover Press is experimenting with an extraordinary and unprecedented policy: setting a key price for the Taylor Rule very close to zero, and holding it there for a while.

To inaugurate the policy, the Press is holding a special anniversary sale of the book The Taylor Rule and the Transformation of Monetary Policy, edited by Evan Koenig (Dallas Fed), Robert Leeson (University of Notre Dame, Australia), and George Kahn (Kansas City Fed) to mark the twentieth anniversary of the presentation of the paper proposing that rule in November 1992. All are encouraged to buy and enjoy Taylor's dazzling ideas.

Eighty-Eight Percent OFF!
The e-book version—available on Amazon, Barnes & Noble, Sony, Kobo, and Apple—is on sale for $2.88, 88 percent off the list price of $24.95. And the hardback is on sale for $7.50, 79 percent off the list price of $34.95.

Forward Guidance
Taking into account market expectations, the Hoover Press sale will last for five weeks, through the end of the December 2012. This is calendar-based, not outcome-based, forward guidance, and it’s a firm commitment without contingencies.