This would hardly be a problem at present, but potentially greater capital movements must be expected, for instance during periods of pressure on the Danish krone.
The Taylor (1993) rule is R  r *   0.5  (   *)  0.5  y , where R is the nominal federal funds rate; r * is the equilibrium real interest rate;  is the four-quarter PCE price inflation rate;  * is the inflation objective, 2 percent; and y is the output gap, defined as the percentage difference between actual GDP and potential GDP.