Taylor Rule 2D: Policy-Rate Phase Plane & Stability
Interactive 2D Taylor Rule simulator: drag and zoom a colour-mapped inflation/output-gap phase plane, tune the central bank's response weights plus the underlying IS-curve and Phillips-curve sensitivities, and watch the true eigenvalue-based stability threshold — not just the textbook a_pi>1 rule of thumb.
Every modern central bank sets its policy rate roughly the way the Taylor Rule describes: a baseline real rate, plus extra tightening in proportion to how far inflation sits above target and how far output sits above trend. This 2D simulator renders that rule as a pannable, zoomable heat map over the inflation-gap / output-gap plane, drops a simulated economy onto it, and steps an IS-curve/Phillips-curve feedback loop quarter by quarter while a strip chart and a live eigenvalue dial track whether the trajectory is actually converging — computed exactly, not read off the textbook aπ>1 rule of thumb, which this simulation shows is an incomplete test once the output-gap weight and the underlying sensitivities are allowed to vary.
Interactive 2D Taylor Rule simulator: drag and zoom a colour-mapped inflation/output-gap phase plane, tune the central bank's response weights plus the underlying IS-curve and Phillips-curve sensitivities, and watch the true eigenvalue-based stability threshold instead of the textbook a_pi>1 rule of thumb.
2D · HTML5 Canvas 2D · 60 FPS target · runs fully client-side, no install