Skip to content

If short-term inflation or GDP growth is ____ their long term trend according to the Taylor Rule the target rate should be ____ from its neutral rate.

May 31, 2018

When short-term inflation or GDP growth is above the target/trend the target rate should be raised from its neutral rate.

When short-term inflation or GDP growth is below the target/trend the target rate should be lowered from its neutral rate.

Advertisements

From → Economics

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: