Reference no: EM131447648
FF - the federal funds rate
PCE INF = PCE inflation
PCE CORE = the core rate of PCE inflation
GDP = real GDP
GDP POT = potential GDP
UR = the unemployment rate
11.25
|
10.0
|
7.1
|
5425.4
|
5404.6
|
5.2
|
12.09
|
11.0
|
8.7
|
5372.8
|
5455.0
|
5.6
|
9.35
|
11.5
|
9.9
|
5351.4
|
5505.2
|
6.6
|
6.30
|
10.3
|
10.1
|
5286.7
|
5554.2
|
8.3
|
5.42
|
8.6
|
9.1
|
5327.4
|
5601.5
|
8.9
|
6.16
|
7.8
|
7.7
|
5415.5
|
5648.2
|
8.5
|
5.41
|
6.8
|
6.8
|
5488.5
|
5694.4
|
8.3
|
4.83
|
6.0
|
6.3
|
5612.4
|
5739.8
|
7.7
|
5.20
|
5.6
|
6.0
|
5654.8
|
5784.9
|
7.6
|
5.28
|
5.2
|
6.0
|
5683.6
|
5830.4
|
7.7
|
4.87
|
5.1
|
6.0
|
5726.2
|
5876.9
|
7.8
|
4.66
|
5.8
|
6.1
|
5792.9
|
5925.7
|
7.5
|
5.16
|
6.8
|
6.5
|
5906.6
|
5976.7
|
7.1
|
5.82
|
6.8
|
6.6
|
6011.1
|
6029.3
|
6.9
|
6.51
|
6.6
|
6.5
|
6011.7
|
6083.6
|
6.7
|
6.76
|
6.5
|
6.4
|
6032.6
|
6140.0
|
6.3
|
7.28
|
6.8
|
6.6
|
6267.2
|
6199.7
|
6.0
|
8.10
|
7.1
|
6.7
|
6328.5
|
6259.8
|
6.0
|
9.58
|
7.6
|
7.0
|
6413.3
|
6319.5
|
5.9
|
10.07
|
7.8
|
6.8
|
6426.1
|
6377.2
|
5.9
|
We are using data from 1976-07-01 to answer this question.
a) Using the original Taylor Rule where the equilibrium real rate of interest is estimated to be 2% and the target inflation rate is 2%, what is the federal funds rate implied by the Taylor Rule?
b) Using the Mankiw Rule, what is the federal funds rate implied by the Mankiw Rule?
c) According to the Taylor Rule, was the Fed being hawkish or dovish during this period? Explain and be specific with numbers.
d) Relate your answer in part c) to the work done by Kydland and Prescott.
e) Draw a reserve market diagram (reserve supply and reserve demand) locating the point associated with the actual federal funds rate on 1976-07-01 as point A. We don't know what value reserve supply is so just label as RS. Now assuming a stable reserve demand curve, explain and show what the Fed would have had to do to obtain the federal funds rate implied by the Taylor rule. Label this point as point B.
Create a brief presentation explain the foursquare concept
: Presentations: Planning a Presentation, You know those times when you're craving Th ai food or the perfect fruit smoothie, but you don't know where to go?
|
Certain initial concessions to international norms
: According to Risse, Ropp, and Sikkink (1999), socialization leads states to make certain initial concessions to international norms, and domestic and transnational pressures move them to further comply. The idea is that states will move through a ..
|
What is the most you would be willing to pay for alfa growth
: You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year for $72.52 per share. You will also receive a dividend of $3.35 per share at the end of the next year. If your required return..
|
What are the major factors that contributed to xiaomi
: What are the major factors that contributed to Xiaomi becoming a leading smartphone company in the PRC? What does Xiaomi's rapid ascent mean for Apple and Samsung in China and globally? How are Apple and Samsung likely to react
|
Federal funds rate implied by the mankiw rule
: a) Using the original Taylor Rule where the equilibrium real rate of interest is estimated to be 2% and the target inflation rate is 2%, what is the federal funds rate implied by the Taylor Rule? b) Using the Mankiw Rule, what is the federal funds..
|
Identify at least three important issues on given topic
: Presentations: Planning a Presentation; Collaboration: Team Projects, In your job as a business development researcher for a major corporation, you're asked to gather and process information on a wide variety of subjects.
|
Why was dick miller important in william hensleys life
: Why was Dick Miller important in William Hensleys life and why was there no turning back for Hensley after he decided to go to a Baptist boarding school?
|
Equilibrium price and the equilibrium quanity
: a. Solve for the equilibrium price and the equilibrium quanity. b. Suppose that a tax of T is placed on buyers, so the new demand equatioin is Qd = 300 - (P +T) Solve for the new equilibrium. What happens to the price received by the sellers, the pr..
|
Select your product or service offering from the list
: Creating Value for Customers: Student can demonstrate an understanding of the concept of value creation. the Role of the Customer in the Company's Strategic Planning. Student can assess the company's commit to serving customer needs as evidenced ..
|