Use Figure 14-5 to explain why the zero lower bound meant that monetary policy could not provide
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In Figure 14-5
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The Taylor Rule implies That the Federal Funds Rate Was Too High in 1982-86 and Too Low in 2003-06 20 15 Actual federal funds rate 10 Taylor Rule -5 1980 19B2 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
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