The conventional Taylor rule places weights of one-half on the inflation gap and output gap, corresponding to
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The conventional Taylor rule places weights of one-half on the inflation gap and output gap, corresponding to the “dual mandate” of the U.S. central bank. Taking into account what you know about the policy goals of the ECB, how might you amend the Taylor rule to better approximate policymaking behavior by the ECB?
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Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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