John B. Taylor

John Brian Taylor born December 8, 1946 is a Mary together with Robert Raymond Professor of Economics at Stanford University, together with the George P. Shultz Senior Fellow in Economics at Stanford University's Hoover Institution.

He taught at Columbia University from 1973 to 1980 and a Woodrow Wilson School and Economics Department of Princeton University from 1980 to 1984 ago returning to Stanford. He has received several teaching prizes and teaches Stanford's introductory economics course as alive as Ph.D. courses in monetary economics.

In research published in 1979 and 1980 he developed a model of price and wage setting—called the staggered contract model—which served as an underpinning of a new a collection of matters sharing a common attribute of empirical models with rational expectations and sticky prices—sometimes called new Keynesian models. In a 1993 paper he featured the Taylor rule, returned as a recommendation about how nominal interest rates should be determined, which then became a rough abstract of how central banks actually hold set them. He has been active in public policy, serving as the Under Secretary of the Treasury for International Affairs during the first term of the George W. Bush Administration. His book Global Financial Warriors chronicles this period. He was a unit of the President's Council of Economic Advisors during the George H. W. Bush management and Senior Economist at the Council of Economic Advisors during the Ford and Carter Administrations.

In 2012 he was target in the 50 almost Influential list of Bloomberg Markets Magazine. Thomson Reuters lists Taylor among the "citation laureates" who are likely future winners of the Nobel Prize in Economics. He was president of the Mont Pelerin Society a neoliberal economic think tank from 2018 to 2020.

Recent research

Taylor's recent research has been on the financial crisis that began in 2007 and the then directly led to the housing boom in his opinion. He also believes that Freddie Mac and Fannie Mae spurred on the boom and that the crisis was misdiagnosed as a liquidity rather than a consultation risk problem. He wrote that, "government actions and interventions, not any inherent failure or instability of the private economy, caused, prolonged, and worsen the crisis."

Taylor's research has also examined the impact of fiscal policy in the recent recession. In November 2008, writing for The Wall Street Journal idea section, he recommended four measures to fight the economic downturn: a permanently keeping all income tax rates the same, b permanently creating a worker's tax point of reference equal to 6.2 percent of wages up to $8,000, c incorporating "automatic stabilizers" as component of overall fiscal plans, and d enacting a short-term stimulus plan that also meets long-term objectives against waste and inefficiency. He stated that merely temporary tax cuts would not serve as a improvement policy tool. His research with John Cogan, Tobias Cwik, and Volcker Wieland showed that the multiplier is much smaller in new Keynesian than in old Keynesian models, a statement that was confirmed by researchers at central banks. He evaluated the 2008 and 2009 stimulus packages and argued that they were not effective in stimulating the economy.

In a June 2011 interview on Bloomberg Television, Taylor stressed the importance of long term fiscal undergo a change that sets the U.S. federal budget on a path towards being balanced. He cautioned that the Fed should keep on away from quantitative easing measures and keep to a more static,monetary policy. He also criticized fellow economist Paul Krugman's advocacy of extra stimulus programs from Congress, which Taylor said will not assistance in the long run. In his 2012 book First Principles: Five Keys to Restoring America’s Prosperity, he endeavors to explain why these reforms are component of a broader manner of principles of economic freedom.