The Taylor rule was designed to provide a measure of

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The Taylor rule is a guideline for setting the federal funds rate, which is the interest rate at which banks lend to each other overnight. It suggests that the central bank should adjust the federal funds rate in response to changes in the economy, balancing the needs for price stability and full employment. The rule takes into account both the inflation rate and the output gap (the difference between actual and potential output), and recommends an appropriate level of interest rates based on these factors.

The Taylor Rule Was Designed to Provide a Measure of