The Taylor Rule is an example of

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The Taylor Rule is a rule-based monetary policy, which sets a target for the federal funds rate based on economic conditions such as inflation and output. It is not discretionary monetary policy, which involves making decisions based on subjective judgment rather than a predetermined rule. It is also not a fixed monetary policy measure that always sets the money supply growth rate at 3 percent, and its impact on the economy can be either contractionary or expansionary depending on the economic conditions at the time.

The Taylor Rule Is an Example of