Re:Federal Reserve to increase interest rates by 50 basis po...
by JumpCrisscross on Wednesday December 14, 2022 @03:17PM
(#33989746)
> the Fed setting interest rates to be in line with the Taylor Rule
No, it is not. The Taylor rule was proposed as a starting point for discussing a model. The coefficients were chosen for consideration and to "capture the spirit of recent research" [1]. Computational advances quickly rendered obsolete an essentially two-factor model.
No, it is not. The Taylor rule was proposed as a starting point for discussing a model. The coefficients were chosen for consideration and to "capture the spirit of recent research" [1]. Computational advances quickly rendered obsolete an essentially two-factor model.
[1] https://web.stanford.edu/~johntayl/Papers/Discretion.PDF