Do we actually need to know the formula? My head is spinning from all these freakin formulas

I doubt you would have to calculate it but if you know the equation you would probably know everything you needed to know about it for concept questions (as with many equations on the exam).

tmjones2 Wrote: ------------------------------------------------------- > I doubt you would have to calculate it but if you > know the equation you would probably know > everything you needed to know about it for concept > questions (as with many equations on the exam). tmjones2 is exactly correct. You wont have to calculate it but you would need to know the affect of changes in variables. Not that it means anything, but there were no Taylor rule questions on the December exam.

i scored 100% on my eco section, yet i have no idea what taylor rule is, dont think its in the notes?

I know it’s in the Schweser notes, but I can’t say for certain whether or not it is in the CFAI texts (but I can’t imagine why Schweser would talk about it if it wasn’t).

It’s there in the CFA texts as an example of the instrument rule for conducting monetary policy. I cant say if you need to know the formula, but you definitely need to know how an instrument rule is different from a targetting rule.