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:

Recording Process

The systematic method of capturing all changes in financial information in a set period, typically through the use of journals and ledgers in accounting.

Travel and Entertainment

Expenses incurred by an employee or a business in the course of business-related travels or entertaining clients, which may be deductible for tax purposes.

Property Development

It involves the process of purchasing land or property, making improvements or constructing new buildings, and selling or leasing them for profit.

Debits and Credits

Accounting entries that respectively increase asset or expense accounts and decrease liability, revenue, or equity accounts (for debits), and vice versa for credits.