Compare two interest rates

Compare the ECB monetary policy with the monetary policy that would have been appropriate for Spain according to the Taylor rule. This question focuses on the period before the crisis, and the lessons it holds for today. Use data from Nasdaq Data Link (https://data.nasdaq.com). If you create a free account, you can download the data in an Excel file. Get the following data (you may want to restrict the search to \"free" data on the right under \"filters\"): - Obtain annual short-run output for Spain from 1999 to 2007. Use the IMF Cross Country Statistics. (Spain Output Gap, % of potential GDP) 0 Obtain annual inflation for Spain from 1999 to 2007. Use the IMF Cross Country Statistics. (Spain Inflation Index, Average Consumer Prices). This is the price index. _ _ 7Tt=Pt/Pt11 Compute the Inflation rate, 0 Obtain the ECB interest rate for main refinancing operations from 1999 to 2007. Use the Federal Reserve Economic Data. (Interest Rates, Discount Rate for Euro Area) This data comes at a higher frequency. To make it easier to combine it with the other two, download the \"annual" data, which takes averages. Question: Compare the Taylor rule interest rate for Spain and the actual ECB interest rate: Was the ECB monetary policy appropriate for Spain between 1999 and 2008? Was it too tight? Was it too lax? Explain why