Relative to TC1, the Taylor curve TC2 represents economic outcomes with lower volatility in output for any given volatility of inflation, and vice versa.
According to the “shifting Taylor curve” explanation, the Great Moderation resulted not from improved practice of monetary policy (which has always been as effective as possible, given the  6  Strictly speaking, according to standard models, policymakers face a tradeoff between volatility of inflation and volatility of the output gap, the difference between potential output and actual output.