The financial crisis was caused or prolonged in part by the Fer deviating from the Taylor rule: Greenspan held the federal funds rate too low for too long in roughly 2003-2005 and then raised it too fast, departing markedly from the rule-based policy that worked well through the 1980s and 1990s.
causalpending
Speaker
Russ RobertsEvidence Quote
“look at a tailored rule to see that it's just so much different than the policy that was being followed in most of the 80s and 90s”
Created: 6/15/2026, 9:17:28 AM
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