Rules For International Monetary Stability Illustrates Importance Of Rules-Based Monetary Policy Reform

Tuesday, April 4, 2017
Rules for International Monetary Stability: Past, Present, and Future by Michael D. Bordo (Editor), John B. Taylor (Editor)

The Hoover Institution Press released Rules for International Monetary Stability, which examines rules-based reform of the international monetary system. The book illustrates how, during much of the past decade, monetary policy has deviated from a rules-based approach in much of the world and economic performance and stability has deteriorated, remaining poor today. 

Rules for International Monetary Stability: Past, Present, and Future by Michael D. Bordo (Editor), John B. Taylor (Editor)

“A thought-provoking mix of interesting historical, theoretical, and empirical papers on the theme of how heterodox post-financial-crisis monetary policies might have led to greater instability in the global financial system,” said Kenneth Rogoff, the Thomas D. Cabot Professor at Harvard University. “Overall, the book makes the case that significant adverse international spillovers are far less of a concern in a rule-based world (e.g, a Taylor rule) than when monetary policy deviates sharply from a rule-based system, as it arguably has done in recent years, especially as central banks have struggled to contend with the zero bound on interest rates.”

Five of the book’s chapters cover international monetary policy interactions from varying perspectives: theoretical, empirical, and historical, followed by two chapters that contain the discussions of policy panels by practitioners and policy makers. Contributors focus on the deepening links of international monetary policy regimes, exchange-rate volatility, and international capital flows as well as next steps for central banks as they assess the results of unconventional monetary interventions. All the chapters include an edited transcript of the general discussion by the participants in the conference.

“This excellent volume offers a panoramic view of international monetary spillover and coordination issues, current and historical. It will be an essential reference for anyone wanting to understand the interdependence of national central banks, the pitfalls of monetary union, and the unique role of the Fed,” said Maurice Obstfeld, economic counsellor, International Monetary Fund.

Rules for International Monetary Stability is the third volume of policy discussions based on an annual monetary policy conference hosted by the Hoover Institution. In May 2016, the Hoover Institution Press published Central Bank Governance and Oversight Reform, a compilation of results based on a May 2015 conference of the same title. The Hoover Institution will host The Structural Foundations of Monetary Policy May 4-5, 2017 at Stanford University.

About the Editors

Michael D. Bordo is a Board of Governors Professor of Economics and director of the Center for Monetary and Financial History at Rutgers University, New Brunswick, New Jersey. He is currently a distinguished visiting fellow at the Hoover Institution, Stanford University.

John B. Taylor is the Mary and Robert Raymond Professor of Economics at Stanford University, the George P. Shultz Senior Fellow in Economics at Stanford’s Hoover Institution, and the director of Stanford's Introductory Economics Center.

For more information on Rules for International Monetary Stability, visit For more information on the Hoover Institution, visit or find us on Facebook, Twitter, Instagram and Scribd (keyword: Hoover Institution).

About the Hoover Institution: The Hoover Institution, Stanford University, is a public policy research center devoted to the advanced study of economics, politics, history, and political economy—both domestic and foreign—as well as international affairs. With its eminent scholars and world-renowned Library & Archives, the Hoover Institution seeks to improve the human condition by advancing ideas that promote economic opportunity and prosperity and secure and safeguard peace for America and all mankind.

CONTACT INFORMATION: Marlon Bateman | Office of Public Affairs | Hoover Institution bateman [at] | 650-723-2612