The major advantage to passive policy is that it takes the short-term desires of policymakers out of the list of possible goals of macroeconomic policy. Instead, the policymakers are simply present to carry out the macroeconomic policy and to ensure that everything runs smoothly. Policy by rule uses policymakers to implement, rather than design, macroeconomic policy. Similarly, another advantage of passive policy is that the policy rules are based on optimizing the economy in the long run and are less likely to trade short run prosperity for long run growth. Passive policy is not immune to the problems that plague active policy, however. For instance, passive policy must be written by policymakers at some point. Thus, policy rules can contain the biases of the policymakers of a different time--biases that are perhaps quite inappropriate to the current economic climate. And any outright errors in
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