Author Archives: John Taylor
Back to the Ad Hoc Age
The title and the content of Gillian Tett’s short article “Goodbye Moderation, Hello to the Ad Hoc Age,” (FT, Nov 26, reprinted here) describe succinctly the remarkable swing in the pendulum from rules towards discretion in policy in recent years. … Continue reading
Posted in Regulatory Policy
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Toward Price Stability Within a Framework of Economic Stability
Today Congressman Paul Ryan and I published an article explaining the rationale for a reform of the Federal Reserve Act to establish a single “goal of long-term price stability within a framework of economic stability, including clear reporting and accountability … Continue reading
Posted in Monetary Policy
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A Proposal to Restore Reporting and Accountability Requirements for the Fed
In a speech in Washington last week I made a proposal to restore the legislative requirement that the Fed report and be accountable for its strategy for monetary policy. Such a requirement was the law throughout the 1980s and 1990s, … Continue reading
Posted in Monetary Policy
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The End of the Recrudescence of Keynesian Economics
This past weekend Columbia University hosted a conference on the occasion of the 40th anniversary of the famous Phelps volume on the micro foundations of macroeconomics. In addition to the technical papers, which will eventually be published in a conference … Continue reading
Posted in Fiscal Policy and Reforms
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The 2010 Little Big Game in Economics
Once a year, in November, the graduate students in the Stanford and Berkeley Economics Departments get together for the Little Big Game, a series of contests in basketball, volleyball, Frisbee, touch football, and soccer. The Little Big Game takes place … Continue reading
Posted in Teaching Economics
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The QE2 Letter
Many have asked me what I think about the letter criticizing QE2 which was signed by me and other economists. The letter has created quite a stir. I have already written and spoken many times explaining my oppostion to QE2, … Continue reading
Posted in Monetary Policy
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QE2 and G20
An unintended consequence of QE2 has been the strong openly voiced opposition from some of America’s traditional allies as well as those countries, like China, perceived to be on the other side of the bargaining table. So the Fed is … Continue reading
Posted in Monetary Policy
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Empirical Questions About the Anticipation Effects of QE2
No doubt there will be many empirical studies evaluating the impact of the Fed’s November 3 decision to begin another dose of quantitative easing (QE2). Ben Bernanke gave his first assessment of the impact of QE2 in an op-ed yesterday … Continue reading
Posted in Monetary Policy
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Certainly Milton Friedman Would Not Have Supported QE2
Many have asked whether Milton Friedman would have favored the type of massive quantitative easing which the Fed embarked on today. I have argued that he would not. In tomorrow’s Wall Street Journal, Allan Meltzer addresses the question and concludes … Continue reading
Posted in Monetary Policy
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More Evidence on Why the Stimulus Didn’t Work
Polls show that most Americans don’t believe that the stimulus package worked, but debate continues among economists. The most debated issue is the size of government purchases multiplier. Suppose that the government purchases multiplier is 1.5. Then Economics 1 students … Continue reading
Posted in Stimulus Impact
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Economics One 