More than 1 1/2 years are gone that I have written this piece supporting Taylor's view. The figure shows the paths of the FED policy rate actually conducted and an "optimal, stability-oriented" path as suggested by the Taylor rule. The gap - an indiciator of an easing monetary policy - emerging in 2001 considerably provoked the events we need to deal with these days.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7PGDdw2v2WZXhF4oZ-ZxnEHfCoxdqHM44E-0OJS2J6q_zv02VWuDXgrr_a1oz69zvlhyHyGKcyJfRmWaCOos2z_qy_FBzl0BbPTE9dFFxT-fEBHJ47oywP0MoyAT5QXHqcC28WMP2QSY/s400/Taylor.jpg)