[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  James E. Thorne [@DrJStrategy](/creator/twitter/DrJStrategy) on x 50.7K followers Created: 2025-07-26 11:28:59 UTC Rules vs Discretion: the classic monetary policy debate real time. Yes we live in historic times. Calls for the Fed’s complete and total autonomy are fundamentally misguided. The classic “rules vs discretion” debate isn’t just academic relic (yes it’s covered in 3rd year macro) it’s flashing red today as the Fed’s mission creep and unchecked discretion have fueled policy blunders, market confusion, and diminished public trust. Kydland and Prescott’s seminal work exposed why discretionary policy tempts even well-meaning central bankers to break their promises, eroding credibility and producing worse outcomes. Henry Simons, nearly a century ago, warned that unpredictability in monetary policy sows economic instability. The lesson is clear: the Fed’s broad, unrestrained authority isn’t the solution, it’s the problem. If we want a stable, trustworthy monetary system, it’s time for transparent rules, robust models, and clear limits because IMHO absolute discretion has failed, and the intellectual case against it has never been stronger. XXXXX engagements  [Post Link](https://x.com/DrJStrategy/status/1949069431956545571)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
James E. Thorne @DrJStrategy on x 50.7K followers
Created: 2025-07-26 11:28:59 UTC
Rules vs Discretion: the classic monetary policy debate real time. Yes we live in historic times.
Calls for the Fed’s complete and total autonomy are fundamentally misguided. The classic “rules vs discretion” debate isn’t just academic relic (yes it’s covered in 3rd year macro) it’s flashing red today as the Fed’s mission creep and unchecked discretion have fueled policy blunders, market confusion, and diminished public trust. Kydland and Prescott’s seminal work exposed why discretionary policy tempts even well-meaning central bankers to break their promises, eroding credibility and producing worse outcomes. Henry Simons, nearly a century ago, warned that unpredictability in monetary policy sows economic instability. The lesson is clear: the Fed’s broad, unrestrained authority isn’t the solution, it’s the problem. If we want a stable, trustworthy monetary system, it’s time for transparent rules, robust models, and clear limits because IMHO absolute discretion has failed, and the intellectual case against it has never been stronger.
XXXXX engagements
