Rutgers University – The State University of New Jersey Researcher Has Provided New Data on Social Science (Federal reserve monetary policy under the taylor rule: Theoretical framework, empirical analysis, and deviations): Science – Social Science

2025 DEC 03 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx COVID-19 Daily -- Current study results on social science have been published. According to news reporting originating from Rutgers University - The State University of New Jersey by NewsRx correspondents, research stated, “This paper investigates the application of the Taylor Rule in guiding the Federal Reserve’s interest rate decisions.”

Our news correspondents obtained a quote from the research from Rutgers University - The State University of New Jersey: “It summarizes the definition, components, and factors of the Taylor Rule. In addition, it compares the patterns of the formula of the Taylor Rule in different periods. Using historical data from 1960 to 2024, this study evaluates whether the Federal Reserve’s actual interest rate decisions align with the prescriptions of the Taylor Rule. The analysis also examines the degree of deviation in the periods of various disasters, such as the 2008 banking crisis and the SARS-CoV-2 pandemic. In addition, it examines the differences between the monetary policy under each Fed Chair. The study also explores the impact of these deviations on key economic variables, including inflation, GDP growth, and financial market stability.”

According to the news reporters, the research concluded: “Additionally, it explores potential models for improving the forecasting power. The findings highlight the challenges of strictly adhering to the Taylor Rule, particularly during crises, and provide insights into the flexibility required in modern monetary policy.”

For more information on this research see: Federal reserve monetary policy under the taylor rule: Theoretical framework, empirical analysis, and deviations. SHS Web of Conferences, 2025,225():04016. (SHS Web of Conferences - http://www.shs-conferences.org). The publisher for SHS Web of Conferences is EDP Sciences.

A free version of this journal article is available at https://doi.org/10.1051/shsconf/202522504016.

Our news editors report that more information may be obtained by contacting Cao Cheng, Rutgers University - The State University of New Jersey University - The State University of New Jersey - New Brunswick.

(Our reports deliver fact-based news of research and discoveries from around the world.)