Author Archives: John Taylor
More Economists To Meet with Financial Crisis Inquiry Commission
The Financial Crisis Inquiry Commission (FCIC) will meet with more economists on February 26-27 to delve into causes of the crisis, considering in particular: monetary policy, derivatives, shadow banking, GSEs, and bailouts of “too big too fail” institutions. The forum … Continue reading
Posted in Financial Crisis
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New Book on How to End Government Bailouts
America is sick of bailouts. As President Obama called out in the State of the Union “we all hated the bank bailout. I hated it. I hated it. You hated it.” But the bailout mentality continues, and hate alone will … Continue reading
Posted in Financial Crisis
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An Exit Rule as an Exit Strategy for Monetary Policy
Today’s hearing at the House Committee on Financial Services on “Unwinding Emergency Federal Reserve Liquidity Programs and Implications for Economic Recovery” was cancelled because of snow. The hearing was to focus on whether the Fed’s extraordinary measures have worked and … Continue reading
Posted in Monetary Policy
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The Macroeconomics of Education
The new study by my colleague Rick Hanushek and his coauthor Ludger Woessmann shows that bringing US education levels up to the level of Finland would raise real GDP by over $100 trillion measured in present discounted value terms over … Continue reading
Posted in Regulatory Policy
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One Year Later and More Evidence that the Stimulus is Not Working
Friday’s data release from the Bureau of Economic Analysis (BEA) shows that real GDP growth rebounded to 5.7 percent in the fourth quarter from 2.2 percent in the third quarter of last year. The rebound was sharper when compared with … Continue reading
Posted in Stimulus Impact
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Music Videos on Boom and Bust
John Papola and Russ Roberts just put their Hayek versus Keynes rap video on youtube. It’s called “Fear the Boom and Bust.” But also go to their web page EconStories which has much more. Also today PBS NewsHour aired a … Continue reading
Posted in Teaching Economics
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Opinions versus Facts About the Chicago School
New Yorker writer John Cassidy argues in a recent article that free market-oriented Chicago school thinking was largely responsible for the financial crisis, and that, for this reason, interventionist-oriented Keynesian thinking has rightly replaced Chicago, which had previously “greatly influenced … Continue reading
Posted in Teaching Economics
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The GAO Audit of the Fed’s AIG Bailout: Toward Increased Transparency?
Today’s letter from Ben Bernanke to the GAO stating that the Fed would “welcome a full review by GAO of all aspects of our involvement in the extension of credit to AIG” is a step in the right direction. Importantly, … Continue reading
Posted in Financial Crisis
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More on “Too Low For Too Long”
Much continues to be written this week about whether interest rates were too low for too long in the period 2003-2005 . David Papell posted a useful guest analysis on Econbrowser this morning showing that the target federal funds interest … Continue reading
Posted in Monetary Policy
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From Fiscal Stimulus and Fiscal Anti-Stimulus
In an interesting new paper, University of Chicago economists Thorsten Drautzburg and Harald Uhlig calculate the impact the $787 billion fiscal stimulus package passed last year. Previous research, such as the paper by John Cogan, Tobias Cwik, Volker Wieland and … Continue reading
Posted in Stimulus Impact
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Economics One 