Natural-rate models suggest that monetary policy doesn't affect the economy much. However, high and variable monetary growth rates are common, with policymakers often acting against economic cycles. This behavior is rational in a discretionary setting where policymakers aim for reasonable goals without committing to specific monetary growth levels. In this scenario, inflation expectations drive a tradeoff between monetary growth/inflation and unemployment, leading to equilibrium unemployment rates independent of policy actions. The equilibrium monetary growth/inflation rates depend on factors like the Phillips Curve slope and costs of unemployment versus inflation. Implementing costless rules to precommit future policy choices can improve outcomes, highlighting the benefits of rules over discretion.