In Selgin's "Discretion, or a Rule", we discussed the different possible monetary arrangements. 

Answer the following questions:

Are strict rules always preferred to discretion? Explain why or why not

In discretion, we have the problem of "limited knowledge." What is this and why does it matter?

We discussed three possible rules: 

1) Friedman's "k-percent" rule, 

2) "Taylor rule," 

3) Stable spending rule. 

Describe one.