Since Taylor’s own strong preference is for his original rule – Taylor (1993) – I now refer to the later rule as the “balanced-approach rule.”  BIS central bankers’ speeches  7  inflation, and the federal funds rate that FOMC participants reported in April.
15 I then employ the dynamics of one of the Federal Reserve’s economic models, the FRB/US model, to solve for the joint paths of these three variables if the short-term interest rate had instead been set according to the Taylor (1993) rule or the balanced-approach rule, subject, in both cases, to the zero lower bound constraint on the federal funds rate.