DOVISH DREAMS, HAWKISH MATH

A new Fed Chair, an old problem: the numbers don't care who's at the podium

DOVISH DREAMS, HAWKISH MATH

Back in 1992, Stanford economics professor, John B. Taylor proposed a rule to determine the appropriate level of Central Bank overnight interest rates. Affectionately known as the Taylor rule, this model takes the difference between the target inflation rate and the actual rate, and combines that with the difference between th…