Keywords: Monetary policy, simple rules
Abstract: Taylor rules are simple monetary policy rules that prescribe how a central bank should adjust its interest rate policy instrument in a systematic manner in response to developments in inflation and macroeconomic activity. This paper reviews the development and characteristics of Taylor rules in relation to alternative monetary policy guides and discusses their role for positive and normative monetary policy analysis.
Full paper (107 KB PDF)
| Full Paper (Screen Reader Version)
Home | FEDS | List of 2007 FEDS papers
To comment on this site, please fill out our feedback form.
Last update: May 4, 2007