Author Archives: John Taylor
The Fed’s Normalization: How Long and How Far?
The Monetary Policy Subcommittee of the House held a hearing yesterday on “Interest on Reserves and the Fed’s Balance Sheet,” a difficult, but important and timely subject as the Fed begins what it calls its normalization process, or its transition … Continue reading
Posted in Monetary Policy
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A Reawakening of International Monetary Policy Research
International Monetary Stability: Past Present and Future was the topic of this year’s monetary policy conference held last week at Stanford’s Hoover Institution. With highly volatile exchange rates, the spread of unusual monetary policies, and disappointing growth and stability, it … Continue reading
New Book on Fed Oversight Reform
Recent legislation to rein in Fed power, including the Fed Oversight Reform and Modernization (FORM) Act, has generated a load of opinion pieces and acrimonious debate, but so far little in the way of in-depth policy research. The purpose of the … Continue reading
Posted in Monetary Policy, Regulatory Policy
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Economic Exasperation
At the end of this quarter, according to most economists, the U.S. economy will have completed 7 years of so-called expansion (28 quarters from 2009Q3 to 2016Q2) with an anemic annual growth rate of 2 percent. I have been writing … Continue reading
Posted in Slow Recovery
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A Firm Conclusion About the Role of Fed Leading Up to the Crisis
Matthew Klein recently wrote a nice piece for the Financial Times on the role of the Fed in the asset price bubble in 2003-2005 and thereby in the subsequent bust leading to the financial crisis. He begins by reviewing a fascinating … Continue reading
Posted in Monetary Policy
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Economists State Why Policy Rules Legislation Is Needed
Recent policy rules legislation introduced in the House and Senate has attracted much attention—including in op-eds, blog posts, tweets, editorials, speeches, research papers, conferences and Congressional testimony over the past few years. A particular version of this legislation passed the … Continue reading
Posted in Monetary Policy
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The Economic Hokum of Secular Stagnation Redux
Two years ago I published a piece in the Wall Street Journal titled The Economic Hokum of ‘Secular Stagnation.’ I wrote it after Larry Summers presented the secular stagnation view at a joint Brookings-Hoover conference. I argued that the bout … Continue reading
Posted in Slow Recovery
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Trying Out a New Video on the Power of Markets
I always enjoy teaching the introductory economics class—we call it Econ 1 at Stanford— and I’m teaching the course again this winter. Part of the fun is trying out new teaching ideas. During the first couple of weeks I emphasize the … Continue reading
Posted in Teaching Economics
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An Economic Policy–Performance Cycle
For several years I have writing about an cycle in which economic policy swings toward and away from certain key principles of economic freedom. The poor performance of the U.S. economy during the past decade —the Great Recession, the Not-So-Great … Continue reading
Listen to the Economic Experts
Each year I look forward to reading the Annual Report of the President’s Council of Economic Advisers which endeavors to explain the economy and policy from the perspective of the current Administration; my interest may have been piqued from working … Continue reading
Posted in Monetary Policy
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Economics One 