In Chapter 26, Section 26.5, we introduced the Taylor rule. In this chapter, we described the proposal
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In Chapter 26, Section 26.5, we introduced the Taylor rule. In this chapter, we described the proposal that the Fed should pursue a “single mandate” by only targeting inflation. If this change from a dual mandate to a single mandate occurred, would the Taylor rule also change? Briefly explain.
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Taylor rule includes both the inflation gap the difference between the current ...View the full answer
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