Question: 5. Why is observing the Taylor rule important in ensuring macroeconomic stability? What are the potential effects of not taking it into consideration? Visit http://www.

5. Why is observing the Taylor rule important in ensuring macroeconomic stability? What are the potential effects of not taking it into consideration? Visit http://www.

global-rates.com and check the following pages.

a. The ECB refi rate, European central bank’s interest rate

b. Inflation Europe (HICP)

Can you see the Taylor effect in practice with the ECB?

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