The "Taylor rule" for monetary policy provides the Fed with a

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The Taylor rule provides the Fed with a benchmark to guide policy decisions. It suggests that the federal funds rate should be adjusted in response to changes in inflation and real economic activity, helping the Fed achieve its goals of price stability and high employment. However, it is not a mechanical prescription or rule for changing the money supply, and it does not provide a specific time frame for discount rate changes.

The "Taylor Rule" for Monetary Policy Provides the Fed with a