The Taylor Rule and its Aftermath: Elements for an Interpretation along Classical-Keynesian lines

No CSWP59, Centro Sraffa Working Papers from Centro di Ricerche e Documentazione "Piero Sraffa"

Abstract: The aim of this paper is to assess to what extent the Taylor rule can be considered an appropriate representation of the tendency of central banks to react to price inflation. After an overview of the origin and use of the Taylor rule, the paper stresses some difficulties in its implementation according to the modern theory of central banking and the limits of its interpretation by the New Consensus models. Finally, an alternative interpretation of this rule along Classical-Keynesian lines is advanced. In this context, it has to be interpreted, as it is in actual fact, as a flexible and non-mechanical benchmark for monetary policies which are seen to affect income distribution between wages and profits.

Keywords: Monetary policy; Taylor rule; Cost-push inflation (search for similar items in EconPapers)
JEL-codes: E11 E12 E52 E58 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2022-10-31
New Economics Papers: this item is included in nep-ban, nep-cba, nep-his, nep-hme, nep-mon and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.centrosraffa.org/public/b830ffe4-8ae5-4699-92e5-eda29b5b847a.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:sraffa:0059

Access Statistics for this paper

More papers in Centro Sraffa Working Papers from Centro di Ricerche e Documentazione "Piero Sraffa" Contact information at EDIRC.
Bibliographic data for series maintained by Saverio M. Fratini ().