Author Archives: John Taylor
The Staying Power of Staggered Wage & Price Setting in Macro
The new Handbook of Macroeconomics is now in production as all 34 chapters have been submitted (by 74 different authors). It will be out later this year. Harald Uhlig and I edited the book, and we each contributed a chapter. My … Continue reading
Posted in Teaching Economics
Leave a comment
Desperately Needed: Reforms to Raise Productivity Growth
The data released this week on labor productivity growth are really terrible. The growth rate has been negative now for three quarters in a row, and it was – .4 percent over the past year. Unfortunately, these data are reinforcing … Continue reading
Economic Exasperation Continues
With today’s disappointing GDP release for the second quarter and downward revisions for the previous two quarters, the U.S. economy completes 7 years of economic expansion with a whimper. And with an average annual growth rate of only 2.1 percent … Continue reading
Posted in Slow Recovery
Leave a comment
An Economic and Security Policy Blueprint for America
A timely new policy book, Blueprint for America, edited by George P. Shultz, is being released today online for the first time. The release coincides with the start of platform writing by Republicans this week and Democrats the following week, … Continue reading
Now is the Time for “Chapter 14” Bankruptcy Reform
Yesterday a “Chapter 14” bankruptcy reform passed the House of Representatives as Title XI (The Financial Institution Bankruptcy Act) of the Appropriations Bill on Financial Services and General Government. This is a very promising development. The reform would largely end … Continue reading
Posted in Financial Crisis, Regulatory Policy
Leave a comment
Debt Explosion Still Looks Like July 4th Fireworks
Six years ago, on July 4, 2010, in a post on this blog, I plotted the CBO’s projection of the ratio of federal debt to GDP because it reminded me so much of the Fourth of July fireworks. What does … Continue reading
Posted in Budget & Debt
Leave a comment
Whither Economic Freedom Post-Brexit?
As events are turning out, the Brexit decision is providing an opening to revive a trend toward economic freedom and thus stronger economic growth. But will the UK leadership and their counterparts in the EU and the US take that … Continue reading
Solid Economic Support for Sensible Financial Reforms
Economic research, including work in the 1970s on time inconsistency, has long provided a rationale for central bank independence in conducting monetary policy. Indeed, the research encouraged the spread of central bank independence and inflation targeting around the world in … Continue reading
Posted in Monetary Policy, Regulatory Policy
Leave a comment
Rules Are Green and Discretion Is Red in the Monetary Game
Raghuram Rajan, Governor of the Reserve Bank of India, is calling for a reform of the international monetary system. He has been calling attention to problems in the system for a while, and now he is looking for a solution. … Continue reading
New Test Finds No Impact of QE on Long-Term Interest Rate
The Fed’s stated purpose of quantitative easing (QE) was to lower long-term interest rates, and many papers have endeavored to test empirically whether it achieved that purpose. Some, such as the paper by Gagnon, Raskin, Remache, and Sack, have looked at … Continue reading
Economics One 