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Output Gaps, the Taylor Rule and the Stance of Monetary Policy

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  • Juan M. Sanchez

Abstract

The Taylor rule offers a formula to calculate a prescribed policy rate. How do alternative measures of the output gap affect this prescribed rate?

Suggested Citation

  • Juan M. Sanchez, 2024. "Output Gaps, the Taylor Rule and the Stance of Monetary Policy," On the Economy 97906, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:l00001:97906
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    File URL: https://www.stlouisfed.org/on-the-economy/2024/mar/output-gaps-taylor-rule-stance-monetary-policy
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    Keywords

    Taylor rule; output gaps; monetary policy; policy rate;
    All these keywords.

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