Taylor Rule
Economics, Monetary Policy, Nominal Interest Rate
Herausgegeben: Mattheus, Dagda Tanner
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In economics, a Taylor rule is a monetary-policy rule that stipulates how much the central bank should change the nominal interest rate in response to changes in inflation, output, or other economic conditions. In particular, the rule stipulates that for each one-percent increase in inflation, the central bank should raise the nominal interest rate by more than one percentage point. This aspect of the rule is often called the Taylor principle.
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