Taylor Rule

Business, Legal & Accounting Glossary

Definition: Taylor Rule


Taylor Rule


Full Definition of Taylor Rule


A rule that suggests appropriate adjustments to interest rates, based on various economic factors such as inflation and employment rate. The rule indicates that if inflation or employment rates are higher than desired, interest rates should be increased in response to these conditions, and the opposite action should be taken under the opposite conditions. The Federal Reserve Board seems to take this rule under consideration, but does not always follow its suggestions when adjusting the interest rate. This rule was developed by John Taylor, a 20th century economist.


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Definition Sources


Definitions for Taylor Rule are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.