Author Archives: John Taylor

The Senate Moves Ahead on a Policy Rules Bill

Today the Chairman of Senate Banking Committee, Richard Shelby, released a draft bill entitled “The Financial Regulatory Improvement Act of 2015” covering a wide range of reforms. Like the widely-discussed House policy rules bill (Section 2 of HR 5018 of last … Continue reading

Posted in Monetary Policy, Regulatory Policy

Surprising Findings at the Macro Handbook Conferences

In order to further progress on the new Handbook of Macroeconomics, which will be published next year, Harald Uhlig and I, the co-editors of the Handbook, hosted two conferences at Stanford and Chicago in April. Harald and I attended both … Continue reading

Posted in Budget & Debt, Financial Crisis, Fiscal Policy and Reforms, International Economics

A Monetary Policy for the Future

Yesterday I spoke at a panel on “Monetary Policy in the Future,” with Ben Bernanke and Gill Marcus at an IMF event Rethinking Macro Policy.  A written version of my opening is posted below (longer than my usual post). Ben Bernanke … Continue reading

Posted in Monetary Policy

Was Janet Yellen Test Driving the Policy Rule Bill?

In a speech last week Fed Chair Janet Yellen made use of policy rules, and in particular the Taylor rule, to explain her views on normalizing policy. This comes on the heels of Fed Vice-Chair Stanley Fischer’s reference to the … Continue reading

Posted in Monetary Policy

Bernanke Says “The Fed Has a Rule.” But It’s Only Constrained Discretion and It Hasn’t Worked

In response to a question about the policy rules bill at Brookings recently, Ben Bernanke remarked that the “The Fed has a rule.” His claim surprised quite a few people, especially given the Fed’s resistance to the policy rules bill, so … Continue reading

Posted in Monetary Policy

Central Banks Without Rules Are Like Doctors Without Checklists

Recent proposals for policy rules legislation have led to a fascinating replay of issues that have long been at the heart of the rules versus discretion debate. Larry Summers raised one in a debate between him and me at the … Continue reading

Posted in Monetary Policy, Teaching Economics

Witness Allan Meltzer and the Ouija Board Analogy

Last week the Senate Banking Committee held a hearing about monetary reform and the need for “responsible oversight” of the Fed as Senator Richard Shelby, the Committee Chair, put it.  Allan Meltzer was a witness, and I sat next to … Continue reading

Posted in Monetary Policy, Regulatory Policy