Author Archives: John Taylor
Notches and Disincentives in the Health Care Law
My colleague Dan Kessler writes in today’s Wall Street Journal that Obamacare creates large disincentives to work. I’ve found the following graph useful for showing students why. (The same type of graph is used in of my economics text Chapter … Continue reading
Posted in Regulatory Policy
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On the Budget Debate People Are Saying “All We Want Are the Facts”
This graph from my Friday Wall Street Journal article simply presented basic facts about the second Obama budget and compared it with the first Obama budget and with the House budget. So why did it attract so much attention here … Continue reading
Posted in Budget & Debt
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Why a Lack of Transparency in the Administration’s Budget II is a Problem
A transparent budget proposal—such as the Administration’s first 2012 Budget presented by President Obama on February 14 or the House Budget presented by Paul Ryan on April 6—contains year-by-year tables showing the proposed path for government outlays over time. These … Continue reading
Posted in Budget & Debt
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Stanford Economist Jon Levin wins Clark Medal
The American Economic Association has just chosen my colleague Jon Levin to receive the John Bates Clark Medal awarded each year to the best economist under the age of forty. Congratulations Jon! And a good prediction by Justin Lahart of … Continue reading
Posted in Teaching Economics
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Why the Budget Agreement is a Game Changer
The budget agreement that emerged from last week’s negotiations literally changes the direction of federal spending. As the chart shows the Obama Administration’s proposed increase in discretionary spending for 2011 has been reversed in the course of the negotiations into … Continue reading
Posted in Budget & Debt
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The Simple Budget Choice: Remove or Lock-In the Spending Binge
Much has been written on how the House Budget Resolution for 2012 presented on Tuesday by Paul Ryan compares with the Administration’s Budget for 2012. From a macroeconomic perspective, perhaps the biggest difference is that the House Budget brings outlays … Continue reading
Posted in Budget & Debt
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A Credible Strategy to Reduce Government Spending Growth and Increase Economic Growth
In tomorrow’s Wall Street Journal, Gary Becker, George Shultz and I present the economic case for a credible strategy to reduce the growth of federal government spending, bring the deficit down, and increase economic growth. We emphasize the words credible … Continue reading
Posted in Fiscal Policy and Reforms
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Another Round on Investment and Unemployment
Paul Krugman responded to my reply (March 31) to his two critiques (afternoon and evening of March 30) of my post (January 14) on the negative correlation between investment and unemployment. He now says that Taylor “professes himself baffled.” Of … Continue reading
Posted in Fiscal Policy and Reforms
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Rebalancing Monetary Policy and the G20 Agenda
Yesterday’s meeting of the G20 finance ministers in China broadened the ongoing “rebalancing current accounts” agenda to consider international monetary policy reform. But few central bank governors came so an important monetary policy issue could not be discussed: the international … Continue reading
Posted in International Economics
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Investment and Unemployment over Longer Periods of Time
Like Paul Krugman, Justin Wolfers also wrote yesterday about my blog post of January 14 on the correlation between investment and unemployment. Wolfers argues that the relationship did not exist in earlier years. He is wrong. His argument is based … Continue reading
Posted in Regulatory Policy
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Economics One 