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How an equation could help keep inflation low and jobs high

The Federal Reserve meets regularly and sets a target interest rate to keep inflation low and jobs high. But what if an equation could do all the work — and even do a better job?

Darian Woods and Mary Childs from NPR’s daily economics podcast, The Indicator, explain The Taylor Rule.

This article was originally published on WBUR.org.

Copyright 2022 NPR. To see more, visit https://www.npr.org.