On 6/29/06, Doug Henwood <[EMAIL PROTECTED]> wrote:
And it all depends on your assumptions for some of the variables. So how much of a rule is the Taylor rule, really?
it does okay at predicting the actual Federal Funds rate. To me, it represents the compromises that the bankers & economists who run the FOMC come to. They're anti-inflation and to a lesser extent, anti-unemployment. They believe there's an equilibrium real FF rate out there somewhere... and that it's constant despite all the changes the US economy has gone through. -- Jim Devine / "Force cannot, like opinion, endure for long unless the tyrant extends his empire far enough afield to hide from the people, whom he divides and rules, the secret that real power lies not with the oppressors but with the oppressed." -- the Marquis de Condorcet.
