Skip to main content

What is the Taylor Rule telling us?

In recent years, policy rates in advanced economies have been set much lower than the levels implied by John Taylor’s original rule, which he formulated in the early 1990s. But once we account for the fall in equilibrium interest rates globally since then, policy is not as loose as it appears to be at face value.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.