Question

Plot the Taylor Rule since 1990 on a quarterly basis (similar to Figure 18.9). For the output gap, use the percent deviations of real GDP (FRED code: GDPC1) from potential output (FRED code: GDPPOT). For inflation, use the percent change from a year ago of the price index for personal consumption expenditures (FRED code: PCEPI). Assume that the long-run risk-free rate averages 2 percent and the target inflation rate is 2 percent. When complete, compare the Taylor Rule rate against the actual federal funds rate (FRED code: FEDFUNDS) after 2007.



$1.99
Sales0
Views102
Comments0
  • CreatedOctober 02, 2014
  • Files Included
Post your question
5000