Since “the real world is generally complex and non-linear, [even] within a well specified FIT framework, the implicit monetary policy reaction function would then also be non-linear (and possibly very complex, as it would not be possible to rely on certainty equivalence)” (Visco, 2003, p. 24), Indeed, considering a Taylor rule as a description of the normal conduct of monetary policy, I argued that for some purposes a linear rule with the interest rate expressed as a function also of asset price misalignments could be a simple and linear approximation (a Taylor “approximation”, after Brook Taylor the mathematician, within the Taylor “rule” introduced by John Taylor the economist!)
of how central banks would behave (or perhaps should have behaved) in a non-linear and complex environment. BIS central bankers’ speeches  3  and the propensity to take risks. At the same time, macroprudential policies will likely react to, and affect, credit growth and asset prices, influencing the monetary policy transmission mechanism.