Taylor Rule

View Financial Glossary Index

Definition

The Taylor rule proposes that central banks should change the nominal interest rate based on changes in inflation and economic output. The Taylor rule says that for each 1% rise in inflation, central banks should raise nominal interest rates by greater than 1%. This detail is referred to as the "Taylor principle".

Are you an investing professional?

Click here to request a live demo of YCharts Professional, our premium suite of tools and data.
Learn more about our professional products. Call (866) 965-7552 or email sales@ycharts.com

Advertisement

Related Terms

{{root.upsell.info.feature_headline}}.

{{root.upsell.info.feature_description}}

Please note that this feature is only available as an add-on to YCharts subscriptions.


Please note that this feature requires full activation of your account and is not permitted during the free trial period.

Start My Free Trial {{root.upsell.info.call_to_action}} No credit card required.

Already a subscriber? Sign in.