McCallum rule and the Taylor rule

CFA Level I
#1

The primary difference between the McCallum rule and the Taylor rule is that the McCallum rule follows the: A. Keynesian feedback rule and adjusts the federal funds rate to target the inflation rate. B. monetarist feedback rule and adjusts the federal funds rate to target the inflation rate. C. Keynesian feedback rule and adjusts the growth rate of the monetary base to target the inflation rate. D. monetarist feedback rule and adjusts the growth rate of the monetary base to target the inflation rate. Can someone please summarise the following: Keynsian theory Monatrist theory New keynsian theory New monatarist theory. Also where does McCallum rule and the Taylor rule fit into all this? Oh and answer is D

#2

Have a look at this, might help: http://www.analystforum.com/phorums/read.php?11,741654,742453#msg-742453

#3

perfect thanks a lot

#4

D by definition