Inflation targeting is different from the Taylor rule because the Taylor rule is based on a forecast of inflation, but inflation targeting adjusts monetary policy to past inflation.

Question

Quizplus · Accepted Answer

Inflation targeting is based on a target or range for future inflation, while the Taylor rule recommends adjusting interest rates based on a model of expected inflation and output relative to their long-term trends. So, the statement is reversed.

Inflation Targeting Is Different from the Taylor Rule Because the Taylor