Panel Discussion.

The first message was presented in the form of a simple graphical ISLM analysis, and soon after textbook writers incorporated this analysis in their macroeconomics and money and banking textbooks. At the time Poole wrote his paper, the typical IS and LM curves were drawn without a notion that they could move around stochastically. Bill Poole showed how adding exogenous disturbances to the curves provided a simple framework for monetary policy decisionmaking under uncertainty. While the framework was simple, the message was extremely useful: When shocks to money demand are very large, central banks should target the interest rate because those shocks would otherwise cause harmful swings in interest rates. When The Importance of Being Predictable