Author Archives: John Taylor
The Fed’s New View is a Little Less Scary
Today’s FOMC meeting and press conference clarified to some degree how large the Fed intends to let its balance sheet grow under quantitative easing. Under the FOMC’s current economic outlook, the Fed intends to slow, before the end of the year, … Continue reading
Posted in Monetary Policy
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Notes on an Economics Graduation
I like graduations. Sunday was Stanford’s. It was a beautiful day, especially for economics graduates, who gathered under a big tent with family and friends in front of Stanford’s Hoover Tower, listened to a fascinating speech on matching by Nobel Prize … Continue reading
Posted in Teaching Economics
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Paul Krugman is Wrong about Fiscal Policy Research
Over the weekend, Paul Krugman responded to my post in which I show that the slowdown in state and local government purchases of goods and services is a consequence, rather than a cause, of the weak recovery. My basic point … Continue reading
Posted in Fiscal Policy and Reforms
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Don’t Blame Weak Recovery on State and Local Spending Cuts
As the economic recovery has remained weak well into its fourth year, some Washington policy makers have increasingly been blaming cuts in government spending, with much of their finger pointing at state and local governments where purchases of goods and … Continue reading
Posted in Slow Recovery
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A Victory for Markets and a California Raisin Suit
Enlivening the principles of economics course (we call it Economics 1 at Stanford) with skits and stunts to make it more understandable, relevant and memorable is a passion for many teachers. Reporter Kathy O’Toole once wrote about one of my … Continue reading
Posted in Regulatory Policy
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Former Fed Chairs Speak Out
Paul Krugman’s reply to my post on Allan Meltzer’s and Paul Volcker’s critiques of monetary policy failed to mention what Paul Volcker has been saying. Yet Volcker’s views are important, especially since, as Krugman points out, he “deserves immense respect … Continue reading
Posted in Monetary Policy
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Job Growth–Barely Keeping Pace with Population
Last Friday’s employment report revealed little sign of a lift off of the employment to population ratio. It’s the same as it was in May of last year—58.6 percent. Employment grew by about 1 percent (or 1.6 million) over the … Continue reading
Posted in Slow Recovery
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Meltzer and Volcker on the Fed
In a new piece called “Quantitative Quicksand” published in Project Syndicate, Allan Meltzer argues that the U.S. recovery would be better off if the Fed had not engaged in quantitative easing. The banks are just loaning the extra liquidity to … Continue reading
Posted in Monetary Policy
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Memo to World Bank–Keep “Doing Business”
Several weeks ago on Economics One I wrote that it would be a big mistake for the World Bank to drop or water down its Doing Business reports. It is good news and a nice show of bipartisanship that Members … Continue reading
Posted in Regulatory Policy
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Ed Leamer on the Weak Recovery
In a recent “chart cast” video posted on YouTube, Russ Roberts interviewed Ed Leamer of UCLA on why the recent economic recovery has been so weak. Ed’s list of causes differs a lot from mine, which Russ discussed with me … Continue reading
Posted in Slow Recovery
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Economics One 