ConBoe/Comparison-between-the-actual-Federal-Funds-Rate-and-the-Taylor-Rule

With this data experiment we want to show that the federal funds rate called by the FED has a very strong correlation with the Taylor rule. A determination of this correlation is desirable because the taylor rule is commonly used to forecast FED monetary policy. The Taylor rule which was invented and published 1992 by John Taylor is a forecasting model that determines what interest rate should be to shift the economy toward stable prices and full employment.

RMIT