1 / 12

Taylor Getting Back on Track

Taylor Getting Back on Track. Great Moderation. The Taylor Rule and Fed’s Track Record (Cont.). Taylor rule Federal funds rate target is a function of: The difference between actual inflate rate (INFL) and the target inflation ( INFL *)

marrim
Download Presentation

Taylor Getting Back on Track

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TaylorGetting Back on Track

  2. Great Moderation

  3. The Taylor Rule and Fed’s Track Record (Cont.) • Taylor rule • Federal funds rate target is a function of: • The difference between actual inflate rate (INFL) and the target inflation (INFL*) • The percentage difference between actual and potential real GDP (GAP)

  4. Deviation from Taylor Rule

  5. Liquidity or Counterparty Credit Risk Problem?

  6. Impact of Stimulus (Round 1)

  7. Did TARP Help?

  8. Did TARP Help?

  9. Impact of Stimulus (Round 2)

  10. Likely LR Impact of Stimulus

  11. Likely LR Impact of Stimulus

  12. Monetary Policy Implications Average excess reserves since advent of financial crisis exceed 500 times pre-crisis average.

More Related