we have to set both employment and price level guide lines
so we build a paine rule
that sets explicit job level targets and a price level targets
level targets not rate targets
so far as i know
the present so called taylor rules are a disguised hybrid
an output level target is of course implicit in the NAIRU
its an overt function of a dynamic path not of potential output
but of utilization in as much as employment compared to potential emplyment
tracks the out put path
of course it really ought to be based on an estimate of maximum potential employment but take the explicit form of a jobs path
a smart path that is an explicit algorithm
ie flexes with any trend changes
the policy response should be system state dependent ie
varying from top of the repressed spontaneous cycle to its bottom
in other words the policy response depends on the position of the system
in "the channel"
by using an explicit smartpath
agents can work out sound varients
this is not inconsistency now
its consistent dynamic rule following
