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Financial · Tool

Taylor Rule Calculator

Estimate the optimal central bank interest rate based on inflation and output gap using the Taylor Rule formula.

Equilibrium Rate (r*)
%
Current Inflation
%
Target Inflation
%
Output Gap
%
Inflation Gap1.50%
Inflation Adj (0.5x)0.75%
Output Adj (0.5x)0.50%
Recommended Rate
6.25 %
i = r* + pi + 0.5(inf_gap) + 0.5(out_gap)
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