The practical answer would obviously be to determine with a reasonable degree of statistical robustness the potential growth and threshold inflation. The assessment of both is obviously empirical and country specific. And consistent with that, researchers generally refer to an interest rate path implied by the Taylor rule and compare that with the actual policy rate.
If the actual policy rate is lower than the implied path, then the monetary policy stance is viewed as accommodative. 27. Using similar analysis, the recent BIS Annual Report (June 2013) highlights that nominal policy rates in EMEs have remained below the Taylor rule implied path on a sustained basis since 2003, almost for a full decade now.