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Consider the following argument: The Taylor rule rate is usually very close to the target rate set by the FOMC.Have a rule would give bettter
Consider the following argument:
"The Taylor rule rate is usually very close to the target rate set by the FOMC.Have a rule would give bettter accountability, credibility, and transparency, so we should replace the FOMC and just stick to the Taylor rule."
What is wrong with this argument? (hint: Consider the recent financial crisis.)
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