Discuss the coefficients on the inflation gap and output gap terms in the Taylor rule given in

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Discuss the coefficients on the inflation gap and output gap terms in the Taylor rule given in equation (1). If you could change the relative importance of the coefficients, what would you choose?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Oct 02, 2014 08:13 AM

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Discuss the coefficients on the inflation gap and output gap terms in the Taylor rule given in

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