According to John Taylor,during the period 2002-early 2006 the Fed set its federal funds rate target _____________ the rate that would have existed had the Fed set its target using the Taylor rule.

Question

Quizplus · Accepted Answer

According to John Taylor, during the period 2002-early 2006, the Fed set its federal funds rate target below the rate that would have existed had the Fed set its target using the Taylor rule. This deviation from the Taylor rule is considered by many to have contributed to the housing bubble and subsequent financial crisis.

According to John Taylor,during the Period 2002-Early 2006 the Fed