[OC] Taylor rule suggested fed funds rate compared to effective feds funds rateEfficient-Sport-6673 OP t1_itqamb4 wrote
Reply to comment by Ok-Pomegranate-6189 in [OC] Taylor rule suggested fed funds rate compared to effective feds funds rate by Efficient-Sport-6673
Price stability. It really just suggests what the nominal rate should be in order to reach the inflation target. In this analysis I assumed target to be 2%. BTW taylor rule has actually approximated actual fed monetary policy quite well in the past.
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