APPLYING ACADEMIC RESEARCH ON MONETARY-POLICY RULES - AN EXERCISE IN TRANSLATIONAL ECONOMICS - THE HARRY-G.-JOHNSON-LECTURE

Recent progress in the practical application of research on monetary p olicy rules in the United States during the 1990s is examined. The pap er focuses on how simple policy rules that describe how the central ba nk's interest rate responds to the economy have provided a useful fram ework for actual decision making. It is argued that the process by whi ch economic research is put into practice-called translational economi cs-is fascinating and worthy of careful study in general; several rece nt examples from research on monetary policy rules are offered to show why.