Taylor Rule - Equation Discussion

Sometimes I discuss these topics with my son Jerry. This is one of those times. He got back to me after taking a look at the Taylor Rule. He makes very good sense of it...

So, What's the Problem?

This is amazing.

If you look up "Taylor Rule" in Wikipedia, this is what ya get:

In economics, a Taylor rule is a monetary-policy rule that stipulates how much the central bank would or should change the nominal interest rate in response to divergences of actual inflation rates from target inflation rates and of actual Gross Domestic Product (GDP) from potential GDP. It was first proposed by the by U.S. economist John B. Taylor in 1993.

There's more, but I got scared off by that big, ugly formula.

Well check it out! it also says this:

Uses of such a rule include systematically fostering price stability and full employment in reducing uncertainty and increasing credibility of future actions by the central bank

This is totally amazing. The inflation problem is solved. The unemployment problem is solved. Plus, problems I don't even know about: The uncertainty problem is solved. And the credibility problem is solved.

The only problem that remains? Idiots. Either the people that use the Taylor rule, or the ones who posted that joke, or me for not getting it. Pro'bly me.