order to stabilize the real economy. A modified Taylor curve, the forecast Taylor curve, showing the tradeoff between the … achieved an efficient stabilization of both inflation and the real economy and what relative weight on the stability of … inflation and the real economy has effectively been applied. Ex ante evaluation may be more relevant than evaluation ex post …

that 1) while the Fed likely satisfied the Taylor principle in the pre-Volcker era, the US economy was still subject to … self-fulfilling fluctuations in the 1970s, 2) the US economy moved from indeterminacy to determinacy during the Volcker …

that the long-run behaviour of the economy depends critically on whether under the monetary-fiscal regime the steady …