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Authorized for public release by the FOMC Secretariat on 02/09/2018

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Division of Monetary Affairs
FOMC SECRETARIAT

Date:

March 3, 2012

To:

Federal Open Market Committee

From:

Matthew M. Luecke

Subject: Memos on Issues Related to Policy Rules

Attached are two memos on policy rules that follow up on issues raised
in recent FOMC meetings. The first, “Interpreting Interest Rate Policy Rule
Prescriptions in the Presence of LSAPs,” discusses the possible pros and cons
of adjusting the prescriptions of simple policy rules for the effects of the
Federal Reserve's large-scale asset purchases. The second, “Simple Rules and
Optimal Policies in Staff Models,” explores the relationship between the
Tealbook optimal policy simulations and the prescriptions of simple policy
rules in two of our staff models.

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