What are pros and cons of using forecast values of inflation

Reference no: EM13827307

Problems:

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

Additional Information:

The problem is belongs to economics and it is clarify the pros and cons of forecasted values of inflation using Taylor's Rule of monetary policy are discussed in this answer.

Word Limits: 150

Reference no: EM13827307

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