WP 24-06 – How does an economy behave in a historical environment where gold is the international monetary standard? We find that key features of this monetary system are long-run price stability and the nonneutrality of money in the short run.

This special report highlights ongoing work to benchmark the stance of monetary policy using a range of policy rules that are widely employed in studies of monetary economics.

Throughout the nearly nine years I have been president and CEO at the Philadelphia Fed, my foremost responsibility has been our work through monetary policy to achieve the Fed’s dual mandate of price stability and maximum employment. To some, it can seem like a very static process, but how I arrive at these important decisions is much more dynamic. Let me explain.