The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
University
| Teaching Since: | Apr 2017 |
| Last Sign in: | 439 Weeks Ago |
| Questions Answered: | 9562 |
| Tutorials Posted: | 9559 |
bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Using the Taylor rule, calculate the target for the federal funds rate for July 2010, using the following information: equilibrium real federal funds rate of 2%, target inflation rate of 2%, current inflation rate of 1.2% , and an output gap of -7%. In your calculations, the inflation gap is negative if the current inflation rate is below the target inflation rate. How does the targeted federal funds rate calculated using the Taylor rule compare to the actual federal funds rate of 0% to 0.25%?
Â
Â
-----------