Question
You are the Chair of the federal reserve bank of the united states. the neutral rate of interest is 2% the inflation rate is 3.5%
You are the Chair of the federal reserve bank of the united states. the neutral rate of interest is 2% the inflation rate is 3.5% and the output gap is 1.5%. Using the feds rule of thumb, what is the appropriate new nominal federal funds rate that should set for the economy?
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Core Macroeconomics
Authors: Eric Chiang
3rd edition
978-1429278478, 1429278471, 978-1429278492, 1429278498, 1464191433, 978-1464191435
