Gianluca Benigno on the Basics and Policy Functionality of R** and the Dollar’s Imperial Circle
Macro Musings with David Beckworth
00:00
The Taylor Rule and the Double Star
It's very interesting because you developed it in the context of low interest rates and concerns about financial instability. Are we tightening too quickly too much? Are we going to create financial stability on the other side going down? So let me ask this question. Could you take our double star and say plug it into a Taylor rule? You know, the Taylor rule you have first term is like the neutral rate. Would you feel comfortable using it in that context or just something else? How would you put it to use in a policy sense?
Transcript
Play full episode
