Chapter 27 — Further Reading

On monetary policy

Ben Bernanke, 21st Century Monetary Policy: The Federal Reserve from the Great Inflation to COVID-19, W. W. Norton, 2022 The former Fed Chair's comprehensive account of how monetary policy evolved from the 1960s to the COVID era. The best single book on the topic.

John Taylor, "Discretion versus Policy Rules in Practice," Carnegie-Rochester Conference Series on Public Policy, 1993 The original Taylor Rule paper. Short and influential.

On the Volcker disinflation (case study 1)

Paul Volcker and Toyoo Gyohten, Changing Fortunes, Times Books, 1992 Volcker's own account of the disinflation.

William Silber, Volcker: The Triumph of Persistence, Bloomsbury, 2012 The definitive biography.

On QE

Ben Bernanke, "The New Tools of Monetary Policy," American Economic Review, 2020 The former Chair's own assessment of QE and forward guidance.

Arvind Krishnamurthy and Annette Vissing-Jorgensen, "The Effects of Quantitative Easing on Interest Rates," Brookings Papers on Economic Activity, 2011 Empirical evidence on QE's effects on long-term rates.

On the 2022–23 soft landing (case study 2)

Olivier Blanchard, "Fiscal Policy Under Low Interest Rates," MIT Press, 2023 Blanchard's assessment of the fiscal-monetary interaction during the inflation episode.

Federal Reserve, FOMC meeting minutes and statements, 2022–2024 (federalreserve.gov) The real-time record of how the Fed thought about the inflation episode.

A reading order recommendation

Read Bernanke's 21st Century Monetary Policy for the comprehensive picture. Read the FOMC statements from 2022 for the real-time drama.

Chapter 28 — The Financial System and Loanable Funds — is next.