Discussion: Principle and Monetary Policy Exam

Discussion: Principle and Monetary Policy Exam ORDER NOW FOR CUSTOMIZED AND ORIGINAL ESSAY PAPERS ON Discussion: Principle and Monetary Policy Exam ECON 4385 Monetary Policy Homework 2 Answers References. Discussion: Principle and Monetary Policy Exam John Taylor, “A Historical Analysis of Monetary Policy Rules.” Alex Nikolsko-Rzhevskyy and David Papell, “Taylor Rules and the Great Inflation.” Alex Nikolsko-Rzhevskyy, David Papell, and Ruxandra Prodan, “The Taylor Principles.” John Taylor, “Housing and Monetary Policy.” Donald Kohn, “John Taylor Rules.” Ben Bernanke, “Monetary Policy and the Housing Bubble.” Janet Yellen, “Perspectives on Monetary Policy.” Did the Fed follow the Taylor rule during the Great Inflation of the 1970s? No. Federal Funds Rate (FFR) lower than Taylor rule prescribed FFR. (a), (c). (First) Taylor principle violated. Coefficient on inflation not significantly greater than one. (a), (b), (c). Did the Fed follow the Taylor rule during the Volcker Disinflation from 1979 to 1985? No. FFR greater than Taylor rule prescribed FFR. (a), (c). Second Taylor principle violated. Coefficient on output gap not significantly greater than zero. (c). Did the Fed follow the Taylor rule during the Great Moderation from 1985 to 2000? Yes. FFR close to the Taylor rule prescribed FFR. (a), (c). (First) Taylor principle holds. Coefficient on inflation significantly greater than one. (a), (c). Second Taylor principle holds. Coefficient on output gap significantly greater than zero. (a), (c). Did the Fed follow the Taylor rule prior to the Financial Crisis from 2002 to 2006? No. FFR lower than Taylor rule prescribed FFR. (d). Difference smaller with core than with headline inflation. (e), (f). Did the Fed follow the Taylor rule following the Great Recession from 2009 to 2015? No and yes. FFR lower than Taylor rule prescribed FFR with a coefficient on the output gap of 0.5. (g). FFR close to Taylor rule prescribed FFR with a coefficient on the output gap of 1.0. (g). The Taylor Principle is that, when inflation p rises, the federal funds rate is raised more than point-for-point so that the real interest rate rises. The “second” Taylor principle is that, when the output gap y rises, the federal funds rate is increased. Using the data on the next page from the “Taylor Rules and the Great Inflation” paper discussed in class, show whether or not the first and second Taylor principles are satisfied for the three estimates based on (1) the values of the coefficients and (2) the values and statistical significance of the coefficients. The (first) Taylor principle is that the coefficient on inflation a > 1.0. The second Taylor principle is that the coefficient on the output gap g > 0. Significance. t-statistic = coefficient / standard error for significantly different from zero. t-statistic = (coefficient – 1.0) / standard error for significantly different from one. Significant at 5 percent level if the t-statistic > 1.96. Four Quarter Average Inflation Rate 0.95 < 1.0. No for value and statistical significance. 0.70 > 0 and 0.70 / 0.08 > 1.96. Yes for value and statistical significance. One-Quarter-Ahead Inflation Forecast 1.32 > 1.0 but 0.32 / 0.17 < 1.96. Yes for value, no for statistical significance. 0.66 > 0 and 0.66 / 0.13 > 1.96. Yes for value and statistical significance. Two-Quarter-Ahead Inflation Forecast 1.61 > 1.0 and 0.61 / 0.23 > 1.96. Yes for value and statistical significance. 0.68 > 0 and 0.68 / 0.14 > 1.96. Yes for value and statistical significance. Discussion: Principle and Monetary Policy Exam Get a 10 % discount on an order above $ 100 Use the following coupon code : NURSING10

RECOMMENDED: Principle and Agent in Determining Demand for Medical Care

Don't use plagiarized sources. Get Your Custom Essay on
Discussion: Principle and Monetary Policy Exam
Get a 15% discount on this Paper
Order Essay

homeworkhelp

Quality Guaranteed

With us, you are either satisfied 100% or you get your money back-No monkey business

Check Prices
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know that being a student these days is hard. Because of this, our prices are some of the lowest on the market.

Instead, we offer perks, discounts, and free services to enhance your experience.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with My Paper Support
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Nursing
Excellent work! Thank you again!
Customer 452707, December 20th, 2022
Other
GREAT
Customer 452813, June 25th, 2022
Strategic Management
Thanks for the help, really appreciate it
Customer 452821, June 26th, 2022
Nursing
They research and provide the best and up-to-date information..
Customer 452707, June 27th, 2023
IT, Web
Great job on the paper!!
Customer 452885, January 30th, 2023
Criminal Justice
Excellent Work!!!
Customer 452587, March 10th, 2022
Other
NICE
Customer 452813, June 25th, 2022
Social Work and Human Services
Excellent Work!
Customer 452587, July 28th, 2021
Technology
Great job on the paper!
Customer 452885, December 14th, 2022
Human Resources Management (HRM)
Thank you
Customer 452701, September 15th, 2023
Nursing
Great writing! Really appreciate your help!
Customer 452503, April 22nd, 2021
Education
Thank you so much
Customer 452631, October 5th, 2021
Enjoy affordable prices and lifetime discounts
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Order Now Order in Chat

We now help with PROCTORED EXAM. Chat with a support agent for more details