2 Real Taylor Rule ZLBPhillips CurveNominal Taylor Rule EXCLUDING discretionary elementNominal Taylor Rule INCLUDING discretionary elementAccount for ZLBObserved real interest ratepbsgapx²MMAY(Taylor)Doc(Taylor+disc)max (Taylor+disc),0)NOM (Taylor-disc),0)-baseline0.0%0.0%2.4%2.4%1.5%2.0%4.5%0.0%4.5%4.5%2.1%BeRASPalt-0.5%-5.0%2.0%-2.5%1.5%2.0%-5.750%0.000%-5.750%0.000%2.500%150.51Step 1:Calculate inflation fromPhillips Curve.Step 2:Calculate nominal interetrate from TaylorRule+Step 3:Account for ZLBStep 4:Calculate real interest rate QUESTION 6According to the data and parameters in the table entitled Real Taylor Rule ZLB does the zero lower bound (ZLB) constrains under scenario: alt 7.YESO NO

Taylor's rule is used to optimize the use of monetary policy. Without zero lower bond monetary…

Answered: According to the data and parameters in…

According to the data and parameters in the table entitled Real Taylor Rule ZLB does the zero lower bound (ZLB) constrains under scenario: alt 7. O YES O NO

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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