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I don't think the Taylor rule says interest rates should be higher than inflation. It seems like it's dependent on the weights you pick. Historically it's not b
by singron 4y ago
I don't think the Taylor rule says interest rates should be higher than inflation. It seems like it's dependent on the weights you pick. Historically it's not been true either. If that is some implication of the formula I'm not gleaning, then please spell it out.