a hrefhttps:www.hoover.orgresearchremembering-alan-greenspan hreflangenRemembering Alan Greenspana

The Taylor rule, named after Hoover Institution fellow John Taylor, recommends high interest rates in order to prevent possible inflation. During recessions, it recommends low rates to provide stimulus. The Taylor rules main virtues are that it is predictable, and that it can prevent impulsive Fed behavior. If the economy does X, then the Fed will automatically respond with Y.