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    • Monetary policy targeting rule

      • The Taylor rule is a monetary policy targeting rule. The rule was proposed in 1992 by American economist John B. Taylor for central banks to use to stabilize economic activity by appropriately setting short-term interest rates. The rule considers the federal funds rate, the price level and changes in real income.
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  1. en.wikipedia.org › wiki › Taylor_ruleTaylor rule - Wikipedia

    The rule was proposed in 1992 by American economist John B. Taylor for central banks to use to stabilize economic activity by appropriately setting short-term interest rates. The rule considers the federal funds rate , the price level and changes in real income . [3]

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  3. 4 days ago · The Taylor rule is an equation John Taylor introduced in a 1993 paper that prescribes a value for the federal funds rate—the short-term interest rate targeted by the Federal Open Market Committee (FOMC)—based on the values of inflation and economic slack such as the output gap or unemployment gap.

  4. May 22, 2024 · The Taylor Rule is a formula developed by economist John Taylor that suggests how central banks should set the federal funds rate. The formula ties target rates to the metrics of...

    • Brian Twomey
    • 2 min
  5. Apr 28, 2015 · The Taylor rule, which John introduced in a 1993 paper, is a numerical formula that relates the FOMC’s target for the federal funds rate to the current state of the economy. Here’s the...

  6. May 29, 2023 · The Taylor Rule is a formula tying a central bank's policy rate to inflation and economic growth. Developed by economist John Taylor in 1993, it assumes an equilibrium...

  7. A key stipulation of the Taylor rule, sometimes called the Taylor principle, is that the nominal interest rate should increase by more than one percentage point for each one-percent rise in inflation. Some empirical estimates indicate that many central banks today act approximately as the Taylor rule prescribes, but violated the Taylor ...

  8. Aug 3, 2023 · Thirty years since the publication of the Taylor rule, economist John B. Taylor still owns a prime spot in the town square of economic discussions. This article looks at his far-reaching influence on monetary policy.

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