Finance

Taylor Rule Calculator

Estimate the optimal interest rate based on inflation and economic output.

Current Inflation (%)

Target Inflation (%)

Output Gap (%)

Neutral Real Rate (%)

Recommended Fed Funds Rate—

Inflation Gap Component—

Output Gap Component—

Taylor Rule:
i = r* + π + 0.5(π − π*) + 0.5(y)
r* = neutral rate, π = inflation, π* = target, y = output gap