Taylor Rule

The Taylor rule is an economic principle that proposes a formula for determining the appropriate level of interest rates in order to achieve a central bank's economic objectives. The Taylor rule is based on the idea that interest rates should be adjusted in response to changes in inflation and economic output, and is often used as a guide for monetary policy decisions. Continue Reading Below

About Taylor Rule

The Taylor rule is an economic principle that proposes a formula for determining the appropriate level of interest rates in order to achieve a central bank's economic objectives. The Taylor rule is based on the idea that interest rates should be adjusted in response to changes in inflation and economic output, and is often used as a guide for monetary policy decisions.