Taylors Rule

Taylors Rule
A guideline for interest rate manipulation. It was introduced by Stanford economist John Taylor in order to set and adjust prudent rates that will stabilize the economy in the short-term and still maintain long-term growth. This rule is based on 3 factors:

1) Actual versus targeted inflation levels
2) Actual employment versus full employment levels
3) The appropriate short-term interest rate consistent with full employment.

Taylor's rule suggests that the Fed increases interest rates in times of high inflation, or when employment is above the full employment levels, and decreases interest rates in the opposite situations. This method of controlling interest rates has been fairly consistent with interest policy decisions, even though the Fed does not explicitly subscribe to the rule.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Merchant Taylors' School, Northwood — This article is about the Independent school in Northwood, Hertfordshire. For the independent school in Crosby, Merseyside, see Merchant Taylors School, Crosby. Merchant Taylors School Motto Latin: Concordia parvae res crescunt ( Small things… …   Wikipedia

  • education — /ej oo kay sheuhn/, n. 1. the act or process of imparting or acquiring general knowledge, developing the powers of reasoning and judgment, and generally of preparing oneself or others intellectually for mature life. 2. the act or process of… …   Universalium

  • Graham Taylor (footballer) — Graham Taylor Personal information Full name Graham Taylor Date of birth 15 September 1944 ( …   Wikipedia

  • London —     London     † Catholic Encyclopedia ► London     London, the capital of England and chief city of the British Empire, is situated about fifty miles from the mouth of the Thames, Lat. 51°30 , Long. 0°5 . The word London is used in widely… …   Catholic encyclopedia

  • Uilleann pipes — Infobox Instrument color1=#FFD700 color2=#FFEC8B name= Uilleann Pipes names= Full set of uilleann pipes classification= *Aerophone *Wind *Woodwind *Bagpipe range= 2 octaves related= *Border pipes *Northumbrian pipes *Pastoral pipes *Scottish… …   Wikipedia

  • Taylor-Regel — Die Taylor Regel ist nach ihrem Erfinder, dem US Ökonomen John B. Taylor, benannt. Ziel der Regel ist, die Geldpolitik bzw. den von der Zentralbank gesetzten Zinssatz zu bestimmen.[1] John B. Taylor …   Deutsch Wikipedia

  • Dates of 2006 — ▪ 2007 January Keeping America competitive requires affordable energy. And here we have a serious problem. America is addicted to oil, which is often imported from unstable parts of the world. U.S. Pres. George W. Bush, in his state of the union… …   Universalium

  • English public school football games — During the early modern era students, former students and teachers at English public schools developed many unique codes of football. The most well known of these is Rugby football. British public school football also influenced directly the… …   Wikipedia

  • Taylor — is an English surname and given name meaning tailor . It may also refer to: *Taylor (given name), the given name * See also List of people with surname TaylorPlaces* Australia ** Electoral district of Taylor, state electoral district ** Taylor,… …   Wikipedia

  • Reginald Maudling — Infobox Chancellor honorific prefix = The Right Honourable, name=Reginald Maudling honorific suffix = PC order=Paymaster General term start=14 January 1957 term end=14 October 1959 primeminister=Harold Macmillan predecessor=Sir Walter Monckton… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”