Why are policymakers willing to use rules for monetary policy as general guides, but unlikely to follow such rules blindly?
What will be an ideal response?
Policymakers think that they can make policy better than rules do, which is why they hire so many economists to investigate different aspects of policy, giving them far more information than a rule such as the Taylor rule, which is based on only two variables. Policymakers also worry that changes in the economy's structure will prevent any rule from working well for very long.
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