The Polidore Rule for the Federal Funds Rate
Using the Taylor Rule estimator in Bloomberg with the following inputs:
- Inflation alpha: 1
- Target inflation rate: 0%
- GDP alpha: 0
I’m trying to find the “natural” price of objective money and compare that to the Fed’s meddling over time. This is based on my opinion that no benevolent ruler should be setting the price of money for a society as large as the United States.
Here are the results:
