macro_taylor-rule
Calculate the Taylor Rule implied interest rate and deviation from current policy rate by inputting inflation, target inflation, output gap, and neutral rate.
Instructions
Taylor Rule interest rate prescription.
Use when estimating the appropriate policy interest rate via the Taylor Rule. Provide inflation, target inflation, output gap, and neutral rate. Returns: Taylor Rule implied rate and deviation from current policy rate.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| output_weight | No | Weight on output gap | |
| output_gap_pct | No | Output gap as percentage of potential GDP | |
| inflation_weight | No | Weight on inflation gap | |
| target_inflation | No | Target inflation rate (percentage) | |
| current_inflation | Yes | Current inflation rate (percentage) | |
| neutral_real_rate | No | Neutral real interest rate (percentage) | |
| current_policy_rate | No | Current policy rate for gap analysis |