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John Taylor
John B. Taylor is the Mary and Robert Raymond Professor of Economics at Stanford University. He formerly served as the Director of the Stanford Institute for Economic Policy Research where he is currently a Senior Fellow. He is also the George P. Shultz Senior Fellow in Economics at the Hoover Institution.

John B. Taylor

New Principles of Economics Now Available

I am very happy to say that the new edition of Principles of Economics v9.1 is now officially published. Here is where you can find it on the FlatWorld web page: https://catalog.flatworldknowledge.com/catalog/editions/principles-of-economics-9-1.  It has been pleasure for me to continue to work on this edition with Akila Weerapana of Wellesley College, who brings terrific experience and knowledge of teaching basic economic principles. The book continues to cover basic economic...

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“The Most Reckless Monetary Policy Since Arthur Burns”

Today the Editorial Board of the Wall Street Journal wrote that the Federal Open Market Committee has shown “little interest in reeling in what has been the most reckless monetary policy since Arthur Burns roamed the Eccles Building.” Last month I published an article, which Project Syndicate cleverly headlined “Is the Fed Getting Burned Again?” It summarized research consistent with this Wall Street Journal editorial. I presented the research in detail in an April 2021 paper “The...

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Shortest Recession in US History

The Business Cycle Dating Committee of the National Bureau of Economic Research has a very important job. It is responsible for determining the peaks and troughs of business cycles in the United States. It thus decides how long recessions are and also how long expansions are. The Chair of the Committee is Professor Robert Hall of Stanford University. The latest decision of Committee occurred just this week on July 19, 2021. The Committee decided that a trough in monthly economic...

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Monetary Policy a Half Century Ago, and Now

Today I  published an article in Project Syndicate. It starts with a memo sent fifty years ago, on June 22, 1971, by Fed Chair Arthur Burns to President Richard Nixon. Inflation was rising and Burns wrote to Nixon that the Fed was not to blame. Rather the economy had changed and a new policy – a wage and price freeze and controls—was needed.   The memo convinced Nixon, and wage and price controls were implemented. But the intrusive nature began to show and the government controls...

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Amazing New Facts About the 2007-2009 Global Financial Crisis

This week Raghu Rajan spoke at the Hoover Economics Policy Working Group on “Going the Extra Mile: Distant Lending and Credit Cycles” a joint paper João Granja and Christian Leuz. Here is a video of his presentation https://www.hoover.org/events/policy-seminar-raghuram-rajan-1 along with the slides https://www.hoover.org/sites/default/files/going_the_extra_mile.pdf and the paper itself https://www.hoover.org/sites/default/files/going_the_extra_mile_may_3_2021.pdf Raghu focused on...

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The Impact of the Pandemic and Lasting Lessons for Teaching Economics

Yesterday, I gave a keynote talk at the tenth American Economic Association Conference on Teaching and Research in Economic Education (CTREE). I have been teaching economics for 53 years. I love teaching economics. I love researching economics. And I love doing policy in economics. So it was a pleasure to talk about teaching economics, and the questions from other economic teachers and researchers in the audience were really good. Here are the slides. I talked mainly about teaching...

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A New Look at Income Inequality in the US

Yesterday, at the Hoover Economic Policy Working Group (EPWG), David Splinter of the Staff of the Joint Committee on Taxation discussed a paper he wrote with Gerald Auten of the Office of Tax Analysis at the Department of Treasury. A video of Splinter’s presentation, including many questions and answers, is posted on the EPWG web page here along with the paper “Income Inequality in the United States: Using Tax Data to Measure Long-term Trends” My internet went down so the video is...

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Time for a Reentry to a Monetary Policy Strategy

In a new paper I examine the ways for the Fed to engage in a reentry to a rules-based monetary policy. For several years, starting around 2017, the Fed had begun to move to a rules-based monetary policy that had worked well in the US in the 1980s, 1990s, and in other years. Many papers were written at the Fed about the benefits, and the Fed began to report on rules-based policy in its Monetary Policy Report. That move was interrupted in the first quarter of 2020 when COVID-19 hit....

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Principles of Economics — Open – Online – Ready To Go

This spring we will be offering an open online version of the Principles of Economics course. To get more information and sign up, go to https://www.edx.org/course/principles-of-economics. The course begins on Monday, March 29, 2021. It is self-paced so students can move ahead at the most appropriate pace. The video-lectures are based on my Stanford course.  People who watch the video-lectures and take short quizzes can earn a Certificate. There is an on-line forum on which Yiming He...

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The Need for a Monetary Strategy

Today the Federal Open Market Committee described its upcoming plans for the federal funds rate through 2023.  It is good, as I wrote last month on this blog that “Rules Are Back In The Fed’s Monetary Policy Report,” after a short absence, but it would more helpful if the Fed incorporated some of these rules or strategy ideas into its actual decisions. Apparently this did not happen, as the chart below shows. The chart gives the FOMC’s projection of the federal funds rate and three...

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