Taylor Rule

The Taylor rule is a simple formula that John Taylor devised to guide policymakers. It calculates what the federal funds rate should be, as a function of the output gap and current inflation. Here, we measure the output gap as the difference between potential output and real GDP. Inflation is measured by changes in the CPI, and we use a target inflation rate of 2%. We also assume a steady-state real interest rate of 2%.

Notes de version:

Updated

Notes de version:

Set your chart timeframe to 3 months (quarterly), otherwise the values are completely wrong.

Notes de version:

Moving Average

Notes de version:

Now works on all timeframes