The current goal is to hold inflation inside a range of 1 to 3%. However, the Bank of Canada could not have targets for inflation control and be held accountable for achieving them without the flexibility provided by a floating exchange rate regime.
As Taylor’s own strong preference is for his original rule – Taylor (1993) – I now refer to the later rule as the “modified Taylor rule.”  21  I would note that the original Taylor rule, which places only one-half as much weight as the modified rule on unemployment deviations, would already have raised the federal funds rate above the zero bound, producing far worse outcomes than any illustrated in figure 1.