Two economists at the Federal Reserve Bank of Cleveland noted that estimates of potential GDP are very
Question:
Two economists at the Federal Reserve Bank of Cleveland noted that “estimates of potential GDP are very fluid, [which] suggests there is considerable error in our current measure.” They concluded that “this lack of precision should be recognized when policy recommendations are made using a Taylor-type rule.” Briefly explain their reasoning.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: