Taylor's Rule

Taylor's Rule,

How To Define Taylor's Rule?

The Taylor Roll, also known as the Taylor Roll or Taylor Principle, is an ecometric model that describes the relationship between the Federal Reserve's operational objectives and inflation and growth rates in GDP. One way of predicting the Fed's monetary policy and responding to changing economic conditions was to interpret monetary policy as a set of direct monetary policy principles. This rule contains a formula that combines the Fed's operating target for short-term interest rates with two factors: the difference between real and target inflation and real GDP growth and target rates.

  • Taylor's rule is a formula that can be used to predict or guide how the central bank should change interest rates as the economy changes.
  • Taylor's rule suggests that the Federal Reserve raises interest rates when inflation or GDP growth exceeds desire.
  • Critics say Taylor's theory does not explain the confusion in economics.

Literal Meanings of Taylor's Rule


Meanings of Taylor:
  1. A city in southeastern Michigan, southwest of Detroit, with a total population of 60,619 (2008 estimate).


Meanings of S:
  1. Seconds)

  2. Article (part one)

  3. Shilling (s)

  4. Not married.

  5. Solid

  6. Son (in lineage) (languages)

  7. The position of electrons and orbits with zero angular velocity and perfect balance.

  8. Distance (in a mathematical formula)

  9. The 19th letter of the alphabet

  10. Like a capital s.

  11. (Especially in Catholic usage)

  12. Siemens

  13. Small (such as clothing size).


Meanings of Rule:
  1. Exercising maximum power or authority over (an area and its inhabitants)

  2. Talk to the authorities and the law.

  3. Draw parallel lines (paper)

  4. Any clear or understood principle or set of principles that governs behavior in a particular activity or sphere.

  5. Control or dominate an area or people.

  6. Normal or normal condition.

  7. A piece of wood or other hard material used to measure length or to mark straight lines on a ruler.

  8. An order issued by a judge or court that refers only to a particular case.

Sentences of Rule
  1. The area is now managed by elected officials.

  2. Spread the page horizontally and print the information on a ruler.

  3. Understand the rules of the game

  4. The revolution ended British rule

  5. This accident is an exception rather than a rule.

  6. The plastic mold includes a ruler, measurement and drilling instructions.

Synonyms of Rule

fiat, form, edict, pronouncement, make a judgement, hegemony, adjudicate, commandment, proclamation, run, regulate, head, lay down, administer, standard, lead, mastery, jurisdiction, by-law, canon, act, regulation, directive, judge, convention, direction, dictate, routine, ordinance