Author Archives: John Taylor
Comparing 2011 with 1937
In today’s article in Bloomberg View I explore reasons for the current weak recovery, and in particular whether there is an analogy with what happened in the recession of 1937-38 which interrupted the recovery from the Great Depression. Several charts … Continue reading
Posted in Slow Recovery
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Lessons From the Financial Crisis For Teaching Economics
Last week at Stanford the American Economic Association hosted its first conference ever on teaching economics. It was a great success and a second conference will be held in Boston next year, sponsored by the Journal of Economic Education (JEE). … Continue reading
Posted in Teaching Economics
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Economic and Political Leadership on the Budget
The Wall Street Journal’s headline for my article today In Praise of Debt Limit ‘Chicken’ nicely conveys the idea that linking a hike in the debt to a cut in spending—which pundits call a game of chicken—is not a game … Continue reading
Posted in Budget & Debt
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Taylor Rule Recommends Raising Rates
Over at Market Beat: WSJ.com’s inside look at the markets, Mark Gongloff reports that Standard Chartered’s David Semmens says that “Based on a strict Taylor-rule calculation, the first effective fed-funds rate increase shouldn’t come until the first quarter of 2013.” … Continue reading
Posted in Monetary Policy
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Splitting Difference Would Reduce Federal Spending By $4 Trillion
When the Senate voted down the House Budget Resolution (the Ryan budget) by a vote of 40-57, it also voted down an Obama Administration budget (submitted in February) by a vote of 0-97. But the Obama Administration had already discarded … Continue reading
Posted in Fiscal Policy and Reforms
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Speaking and Remembering on Memorial Day
This year I was honored to speak at Stanford’s Memorial Day military appreciation barbecue. There are now 51 enrolled Stanford students who are veterans. I was once a Stanford student veteran. In 1969 I temporarily left Stanford’s Ph.D. program in … Continue reading
Posted in Teaching Economics
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Regulatory Capture and Reckless Endangerment
My review of the book Reckless Endangerment by Gretchen Morgenson and Joshua Rosner (published in yesterday’s Washington Post) gives examples of the many ways in which cozy relations between government and industry lead to reckless policies. Students of economics will … Continue reading
Posted in Regulatory Policy
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Opportunity Cost and the 20 Under 20 Prize
On PBS NewsHour yesterday Peter Thiel argued that the opportunity cost of college may be surprisingly high for many students, and indeed, as widely reported this past week, he raised the opportunity cost for some impressive 20 Under 20 prize-winning … Continue reading
Posted in Teaching Economics
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To the G8: Don’t Let Aid Perpetuate Barriers to Growth in Tunisia and Egypt
In this Bloomberg Echoes post, I argue that the United States should do whatever it can to promote economic freedom in the post-Jasmine Revolution Middle East and North Africa, and strongly support economic leaders who are committed to creating a … Continue reading
Posted in International Economics
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Causation From Base Money To The Multiplier: The QE2 Evidence
During the panic in the fall of 2008 some interpreted the explosion of the Fed’s balance sheet and the monetary base (MB)—currency plus reserves of banks at the Fed—as an appropriate monetary policy response to a shift in the demand … Continue reading
Posted in Monetary Policy
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Economics One 