Taylor Rule
ap = 0.5
ay = 0.5
y = 1
y1 = 1
p = 0.01
p1 = 0.01
i = 0.02
r = 0.015
while true:
dp = Normal (0, 0.01)
dy = Exponential (100)
p = p1
p1 = p + dp
y1 = 0.01 + 1.02 * y
y = y1 – dy
ly = log(1 + y)
ly1= log(1 + y1)
i = r + p + ap * (p-p1)+ ay * (ly - ly1)
end