Consider a country where the central bank policy rate has been constant at 2% from 2012 to 2014. During these three years (2012, 2013, 2014) the equilibrium real interest rate has been 2% and the target inflation rate has been 2%. The current inflation rate has been 2%, 3%, and 2% in 2012, 2013, and 2014 respectively. The output gap has been -4%, -7%, and -6% in 2012, 2013, and 2014 respectively. a) Assuming that some form of Taylor rule is a good benchmark for monetary policy how you would, assess the policy stance of the central bank. b) Would you consider the adopted interest rate policy been appropriate? How confident you are about your answer? Discuss. c) Your textbook discusses the Taylor rule as an approach that can allow to determine the interest rate target of a central bank. The popularity of the Taylor rule, however, has retreated in the last decade. Why do you think this is the case