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Using the Taylor rule, calculate the target for the federal funds rate using the following information: Equilibrium real federal funds rate 2.8% Target inflation rate
Using the Taylor rule, calculate the target for the federal funds rate using the following information:
| Equilibrium real federal funds rate | 2.8% |
| Target inflation rate | 2% |
| Current inflation rate | 4.8% |
| Current Real GDP | 6,357 |
| Potential GDP | 6,273 |
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
