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.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access