Using a recently developed econometric technique to determine how the original Taylor rule and subsequent variations perform using different measures of inflation, output and unemployment. We found that the rule remains relevant today, despite the changes wrought by globalization, financial...

A growing body of empirical macroeconomic literature suggests that analyses using real-time data often yield substantially different—and more accurate—conclusions.

Global economic integration may have made other countries more dependent on each other and weakened their initial responses to U.S. economic fluctuations.