The Taylor rule is a monetary policy guideline A. for determining a target for the inflation rate. B. developed by economist John Taylor for determining the target for the federal funds rate. C. developed by economist John Taylor for determining the target for the reserve rate. D. developed by Alan Greenspan, but summarized by economist John Taylor, for determining the target for the federal funds rate.

Question

Angel Shannon

Business

13 June, 06:29

The Taylor rule is a monetary policy guideline A. for determining a target for the inflation rate. B. developed by economist John Taylor for determining the target for the federal funds rate. C. developed by economist John Taylor for determining the target for the reserve rate. D. developed by Alan Greenspan, but summarized by economist John Taylor, for determining the target for the federal funds rate.

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Callie Cannon · Answer 1

B. developed by economist John Taylor for determining the target for the federal funds rate.

Explanation:

The Taylor rule is one kind of targeting monetary policy rule of a central bank. The Taylor rule was proposed by the American economist John B. Taylor in 1992.

The Taylor rule method for monetary policy, which is a rule that sets the federal funds rate according to the level of the inflation rate and either the output gap or the unemployment rate, does a good job of tracking the US.