Editing Taylor rule (section)

== Alternative theories ==
The solvency rule was presented by Emiliano Brancaccio after the 2008 financial crisis. The banker follows a rule aimed at controlling the economy's solvency .<ref>{{Cite book |title=The global economic crisis: new perspectives on the critique of economic theory and policy |date=2011 |publisher=Routledge |editor=Emiliano Brancaccio |editor2=Giuseppe Fontana |isbn=978-0-203-81672-1 |location=Abingdon, Oxon |oclc=786002088}}</ref> The inflation target and output gap are neglected, while the interest rate is conditional upon the solvency of workers and firms. The solvency rule was presented more as a benchmark than a mechanistic formula.<ref name=solvency>{{Cite journal |last1=Brancaccio |first1=Emiliano |last2=Fontana |first2=Giuseppe |date=2013 |title='Solvency rule' versus 'Taylor rule': an alternative interpretation of the relation between monetary policy and the economic crisis |url=https://www.jstor.org/stable/23601922 |journal=Cambridge Journal of Economics |volume=37 |issue=1 |pages=17–33 |doi=10.1093/cje/bes028 |jstor=23601922 |issn=0309-166X}}</ref><ref>{{Cite journal |last1=Brancaccio |first1=Emiliano |last2=Califano |first2=Andrea |last3=Lopreite |first3=Milena |last4=Moneta |first4=Alessio |date=2020-06-01 |title=Nonperforming loans and competing rules of monetary policy: A statistical identification approach |url=https://www.sciencedirect.com/science/article/pii/S0954349X19304874 |journal=Structural Change and Economic Dynamics |language=en |volume=53 |pages=127–136 |doi=10.1016/j.strueco.2020.02.001 |hdl=11382/533350 |s2cid=214323300 |issn=0954-349X|hdl-access=free }}</ref>

The [[McCallum rule]] was offered by economist [[Bennett T. McCallum]] at the end of the 20th century. It targets the [[Gross domestic product|nominal gross domestic product]]. He proposed that the Fed stabilize nominal GDP. The McCallum rule uses precise financial data.<ref>{{Cite report |last1=Gallmeyer |first1=Michael |last2=Hollifield |first2=Burton |last3=Zin |first3=Stanley |date=April 2005 |title=Taylor Rules, McCallum Rules and the Term Structure of Interest Rates |doi=10.3386/w11276 |website=National Bureau of Economic Research|doi-access=free }}</ref> Thus, it can overcome the problem of unobservable variables.

[[Market monetarism]] extended the idea of NGDP targeting to include level targeting (targeting a specific amount of growth per time period, and accelerating/decelerating growth to compensate for prior periods of weakness/strength). It also introduced the concept of targeting the forecast, such that policy is set to achieve the goal rather than merely to lean in one direction or the other. One proposed mechanism for assessing the impact of policy was to establish an NGDP [[futures market]] and use it to draw upon the insights of that market to direct policy.