What Is Your Response to the Following: "The Taylor Rule

question 86

Essay

 What is your response to the following: "The Taylor rule shows a strong correlation between the target rate actually set by the FOMC and the one predicted by the rule. Since the Taylor rule would provide accountability, credibility, and transparency, the FOMC committee should be dissolved and replaced by a form of the Taylor rule." 

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Definitions:

Wages

The monetary compensation paid by employers to employees for their labor, typically calculated on an hourly, daily, or piecework basis.

Segregation

The act or state of separating or being separated into different groups based on characteristics such as race, gender, or religion, often leading to unequal treatment or opportunities.

Profit Maximizing

The process or goal of a firm to adjust its production and pricing strategies to achieve the highest possible profit.

Economic Historians

Scholars who study and analyze the economies or economic phenomena of the past, integrating perspectives from history and economics.