Following Taylor’s suggestions for parameter values, in Slide 3 we show by the dashed red line the values of the federal funds rate implied by the Taylor rule for the period from 2000 to the present, with inflation measured by the consumer price index (CPI),  5  Kohn (2007) discusses some of these limitations and anticipates some of the points made in my remarks today.
With additional boost coming from the festival fervour and pent-up demand, numerous high-frequency indicators suggest that economic recovery is taking hold. A Quest for Sustained Growth 3. While it is heartening to note that the economy is gradually getting back on its feet after a devastating second wave, recovery has progressed in an uneven manner.