Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

# Discuss the coefficients on the inflation gap and output gap terms in the Taylor rule given in the equation below .

HiĀ

Need help with the following question:

Discuss the coefficients on the inflation gap and output gap terms in the Taylor rule given in the equation below . If you could change the relative importance of the coefficients, what would you choose?

Target fed funds rate = 2 + Current inflation + 1/2 (Inflation gap) + 1/2 (Output gap)

ThanksĀ