摘要：The names Milton Friedman and John Taylor are associated with different monetary policy rules;
but, as shown in this paper, the difference between their perceptions of how the economy works
is not great. The monetary policy rules advanced by Taylor and Friedman are compared by linking
the rules to the two economists¡¯ underlying views about nominal rigidity, the source of trade-offs,
the sources of shocks, and model uncertainty. Taylor and Friedman both emphasized Phillips
curve specifications that impose temporary nominal price rigidity and the long-run natural-rate
restriction; and they basically agreed on the specification of shocks, policymaker objectives, and
trade-offs. Where they differed was on the extent to which structural models should enter the
monetary policy decisionmaking process. This difference helps account for the differences in
their preferred monetary policy rules. (JEL E42, E51, E61)
