Author Archives: John Taylor

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

Which Fed Bill Would Milton Friedman Have Liked?

Writing last week on the Cato at Liberty blog, Steve Hanke argued that Milton Friedman would have supported the “Audit the Fed” bill recently introduced in the Senate.  Steve’s reasoning is based on Friedman’s 1962 essay “Should there be an … Continue reading

Posted in Monetary Policy

Liberate the Recovery

My piece in today’s Wall Street Journal “A Recovery Waiting to Be Liberated,” starts with data showing that economic growth last year was in the end disappointing again.  So far this year it looks even worse: Macroeconomic Advisers one of … Continue reading

Posted in Slow Recovery

Janet Yellen’s Speech on Policy Rules

For many years, going back to the days before Google and Google Scholar helped us find and keep track of things, I created a monetary policy rule home page with links to papers, articles and speeches on policy rules, including … Continue reading

Posted in Monetary Policy

A Feature Not a Bug in the Policy Rules Bill

In his opening line of questions for Janet Yellen at the Senate Banking Committee today, Senator Richard Shelby asked about the use of monetary policy rules and the Taylor Rule, apparently referring to the recent policy rules bill (Section 2 … Continue reading

Posted in Monetary Policy