Are interest rate regressions evidence for a Taylor rule?

In a variety of recent papers, researchers have found that interest rate behaviour approximately follows a Taylor rule. We show that such interest rate behaviour results when the central bank may be following quite different monetary policy rules from the one proposed by Taylor. In other words, an interest rate relation with output and inflation does not identify a central bank reaction function. (C) 2002 Elsevier Science B.V. All rights reserved.