Slide 4 shows the quantitative implications of this point. The actual paths of the policy rate, in blue, and the policy prescription implied by the standard Taylor rule, the dashed red line, are the same as in Slide 3.
Special thanks should go to Miss Cynthia Mammon, ITAP’s indefatiguable Director and Chair for Events, whose persistence in finding a suitable schedule for us has caused my being here tonight possible.