Central banks cannot live by Taylor's rule alone

In a recent post Chris at Stumbling and Mumbling wrote that the Bank of England's Monetary Policy Committee was not 'fit for purpose':

Herein, I think, lies one argument for adopting a Taylor rule. The MPC just can't get the members to make judgment-based decisions.

A rules-based approach to monetary policy is appealing in its simplicity, and the move by many central banks towards inflation targeting can be seen as a partial move from a discretion to rules-based approach. But I don't accept though that something as mechanistic as a Taylor rule (though informative) would work as as effectively as a Monetary Policy Committee. Here's three reasons for my scepticism:...more>>