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Fed up with the Rules? Empirical Testing of Taylor Rule Variations in American Monetary Policy

Year: 2025

Type: article

Abstract: This study empirically tests variation in the Taylor rule over forty years of U.S. monetary policy, recognizing the potential philosophical breakpoints between Fed chair-people. We test the standard rule alongside more inclusive alternatives, settling on a more intentional and complex version that more accurately models the period in consideration. We notice important deviations from even the most inclusive version of the Taylor Rule, deviations that correlate with changes in political philosophy and historic events.

Source: International Finance and Banking

DOI: 10.5296/ifb.v11i1.22746

Authors: Keeley Kandziora, Daniel Kent Neil Johnson

Institutions: Colorado College, NAACP Legal Defense and Educational Fund

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W4408807399

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