What Is Taylor-Rule Neutrality For The Federal Funds Rate?
Both the binary options market and the federal funds futures market are expecting no move at this month’s September 16, 2008 meeting. If the Federal Reserve is holding at 2.00%, does this mean they have achieved a neutral funds rate? One popular way to measure “neutral” is to use the Taylor rule, created by Stanford economist John Taylor.
Untitled
Commentaries — September 8, 2008
What Is Taylor-Rule Neutrality For The Federal Funds Rate? Both the binary options market and the federal funds futures market are expecting no move at this month’s September 16, 2008 meeting. If the Federal Reserve is holding at 2.00%, does this mean they have achieved a neutral funds rate? One popular way to measure “neutral”… Continue reading Untitled