Thus, if the economy's true equilibrium real funds rate deviated systematically from that value, the intercept term would need to be adjusted to ensure that the inflation rate converged over time to its longer-run goal.
15  In these simulations, the Taylor (1993) rule is defined as Rt = 2 pt 0.5(pt - 2) 0.5Yt, while the Taylor (1999) rule is defined as Rt = 2 pt 0.5(pt - 2) 1.0Yt.