Taylor Rules around the World: Mapping Monetary Policy

El-Shagi, Makram / Ma, Yishuo

Abstract

We estimate Taylor rules for 50 inflation targeting countries around the world. We find that adherence to the Taylor principle is an exception at best. Thus, it seems unlikely that using the interest rate as intermediate target is as widespread as the claims of central banks imply.

Keywords

Taylor rule, inflation targeting

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El-Shagi, M. / Ma, Y.: Taylor Rules around the World: Mapping Monetary Policy, in: Economics Letters, Vol. Volume 232, 111275, 2023.