What is taylor rule and what components of taylor rule


Problem

1. Is the US Dollar tied to a silver or gold reserve system? Look up some historical timeline related to this matter.

2. How does the Fed decide whether to use expansionary or contractionary monetary policy? Write up two reasons/factors.

3. What is Taylor Rule, and what components of Taylor Rule that relate to the Fed's decision in terms of determining its interest rate policy? Look up the current interest rate, and check if Taylor Rule is aligned to this current rate.

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Macroeconomics: What is taylor rule and what components of taylor rule
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