Author Archives: John Taylor

Still Learning From Milton Friedman: Version 3.0

We can still learn much from Milton Friedman, as we celebrate his 105th birthday today.  Here I consider what we can learn from his participation in the monetary policy debates in the 1960s and 1970s. I draw from a 2002 … Continue reading

Posted in Monetary Policy

Debate Over the Very Principles of Economics

Today is the launch of the online version of my Economics 1 course (and namesake of this Blog and my Twitter handle) on the Principles of Economics for summer 2017. This year is also the tenth anniversary of the start … Continue reading

Posted in Financial Crisis, Teaching Economics

Economics 1 Online. No Charge.

This summer I will be offering my Stanford course Principles of Economics online for free.  You can find out more and register for the course, Economics 1, on Stanford’s open on-line platform Lagunita.  The course starts at 8 am PT … Continue reading

Posted in Teaching Economics

A Whole New Section on Policy Rules in Fed’s Report

The Federal Reserve Board’s semi-annual Monetary Policy Report issued by Chair Janet Yellen last Friday contains a whole new section called “Monetary Policy Rules and Their Role in the Federal Reserve’s Policy Process.” The section contains new information and is … Continue reading

Posted in Monetary Policy

Seeing Through the Fog of Federal Budget Forecasting

Every summer since 2010 I’ve charted the latest Congressional Budget Office (CBO) long-term projection of the federal debt, noting the similarity with the Fourth of July fireworks. But during these years, the CBO has changed its procedures several times, fogging … Continue reading

Posted in Budget & Debt

Macro Model Comparison Research Takes Off

Last week a new Macroeconomic Modelling and Model Comparison Network (MMCN) was launched with a research conference at Goethe University Frankfurt. Economists from the IMF, the Fed, the ECB, and other central banks presented and compared policy models along with … Continue reading

Posted in Uncategorized

Reserve Balances and the Fed’s Balance Sheet in the Future

An important part of the Fed’s normalization policy is to reduce its holdings of securities and thereby reserve balances—deposits of banks at the Fed—used to finance these holdings. As I argued when quantitative easing began in 2009, this reduction should … Continue reading

Posted in Financial Crisis, Monetary Policy, Regulatory Policy