The Taylor rule links the Bank of Canada's target for the

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The Taylor rule is a monetary policy guideline that links the target for the overnight interest rate set by the central bank (in this case, the Bank of Canada) to economic variables such as inflation and output growth. The rule suggests that the central bank should adjust its interest rate target in response to changes in these variables in order to achieve its overall policy goals of price stability and maximum sustainable economic growth. It does not directly link the money supply or changes in interest rates to these variables.

The Taylor Rule Links the Bank of Canada's Target for the