Author Archives: John Taylor

Discussion of Policy Rule Legislation Continues

Discussion and debate about new policy rule legislation continued during the past week.  I replied to Alan Blinder’s  article, “An Unnecessary Fix for the Fed,” published in the Wall Street Journal last Friday (July 18).  I show that Alan’s article was … Continue reading

Posted in Monetary Policy

What a Rollout!

Last week (July 7) I wrote on this blog about a newly-introduced bill  that would require policy rules for the Fed. Since then a Congressional hearing was held on the bill on July 10, Fed Chair Janet Yellen was cross-examined … Continue reading

Posted in Monetary Policy

New Legislation Requires Fed to Adopt Policy Rule

A lot of research and experience shows that more predictable rules-based monetary policy leads to better economic performance—both in terms of price stability and steadier-stronger employment and output growth.  But in practice there have been big swings in Fed policy … Continue reading

Posted in Monetary Policy

Stanford’s Economics 1 Now Coming Online

I have been teaching economics at Stanford for many years. Economics 1 is one of my favorite courses, and it’s been one of the most popular courses at Stanford.  I usually teach it in a large lecture hall with hundreds … Continue reading

Posted in Teaching Economics

Policy Rules When Money Still Matters

In an interesting recent paper and blog post “Money Still Matters,” Michael Belongia and Peter Ireland report new empirical results with relevance to monetary policy.  They show that the Divisia index of the money supply (not M1 or M2) has effects on … Continue reading

Posted in Monetary Policy

Ten Amusingly Irreverent Tweets at Conference on Fed

So many members of the financial press were having a good time tweeting at the Fed Centennial conference last week at Stanford that, according the “TweetReach Report,” about 1 million Twitter accounts were reached and 10 million tweets were delivered … Continue reading

Posted in Teaching Economics

An Essay on Gary Becker for the Hoover Digest

I wrote this short essay on Gary Becker for the Hoover Digest where it will appear in a forthcoming issue: Gary Becker was “the greatest social scientist who has lived and worked in the last half century.” So declared Milton Friedman … Continue reading

Posted in Teaching Economics

New Conference on Fed and Rules-Based Policy: A Preview

Today starts a two day conference at Stanford’s Hoover Institution on monetary policy. It’s part of the Fed Centennial. Here is the full agenda which includes talks and commentary by Esther George, Tom Sargent, Charles Plosser,  John Williams, Jeff Lacker, Ed … Continue reading

Posted in Monetary Policy

Market Failure and Government Failure in Leading Economics Texts

A new review of 23 leading Principles of Economics texts reveals huge differences in the coverage of government failure versus market failure.  Jim Gwartney, who is the author of a leading text with a strong emphasis on public choice, along … Continue reading

Posted in Teaching Economics

Deleting Vice and Other Revisions in Monetary Lectures

Yesterday I finished my course on Monetary Theory and Policy for this year’s 1st year PhD students at Stanford.  I have been teaching in the 1st year PhD core for a long time and it gets more interesting each year.  (Technically speaking … Continue reading

Posted in Teaching Economics