Louis monetary policy rules

Louis monetary policy rules refer to guidelines used by central banks to manage the economy by adjusting interest rates based on economic conditions. Specifically, they often involve responding to changes in inflation and unemployment rates. For example, if inflation rises above a target level, rules may suggest increasing interest rates to cool spending. Conversely, if unemployment is high, lowering interest rates might stimulate borrowing and investment. These rules aim to maintain price stability and support economic growth, ensuring the economy remains balanced and resilient.