According to estimates of the Taylor rule,monetary policy was too easy
A)from 1960 to 1965.
B)from 1965 to 1979.
C)in the 1980s.
D)in the 1990s.

Question

Quizplus · Accepted Answer

According to estimates of the Taylor rule, monetary policy was too easy from 1965 to 1979. This period was characterized by high inflation and low unemployment, which suggests that monetary policy was too accommodative. The Taylor rule recommends that policymakers set interest rates based on the level of inflation and the output gap, and during this period, interest rates were lower than what the rule would suggest.

According to Estimates of the Taylor Rule,monetary Policy Was Too