Mary and Robert Raymond Professor principles of economics timothy taylor pdf Economics at Stanford University, and the George P. Shultz Senior Fellow in Economics at Stanford University’s Hoover Institution.
Born in Yonkers, New York, he graduated from Shady Side Academy and earned his A. 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 class of empirical models with rational expectations and sticky prices—sometimes called new Keynesian models. In 2012 he was included in the 50 Most Influential list of Bloomberg Markets Magazine. In 1977, Taylor and Edmund Phelps, simultaneously with Stanley Fischer, showed that monetary policy is useful for stabilizing the economy if prices or wages are sticky, even when all workers and firms have rational expectations.
Taylor’s research on monetary policy rules traces back to his undergraduate studies at Princeton. A key stipulation of the Taylor rule, sometimes called the Taylor principle, is that the nominal interest rate should increase by more than one percentage point for each one-percent rise in inflation. Some empirical estimates indicate that many central banks today act approximately as the Taylor rule prescribes, but violated the Taylor principle during the inflationary spiral of the 1970s. Taylor’s recent research has been on the financial crisis that began in 2007 and the world economic recession. He finds that the crisis was primarily caused by flawed macroeconomic policies from the U. Taylor’s research has also examined the impact of fiscal policy in the recent recession.
In a June 2011 interview on Bloomberg Television, Taylor stressed the importance of long term fiscal reform that sets the U. Monetary policy during a transition to rational expectations”. Stabilizing powers of monetary policy under rational expectations”. Staggered wage setting in a macro model”.
Staggered wage setting in a macro model”, in Mankiw, N. Romer, David, New Keynesian economics, volume 1, Cambridge, Massachusetts: MIT Press, pp. Estimation and control of a macroeconomic model with rational expectations”. Scale economies, product differentiation, and the pattern of trade”. New econometric approaches to stabilization policy in stochastic models of macroeconomic fluctuations’. 34 of Handbook of Econometrics, vol.
Discretion versus policy rules in practice”. Carnegie-Rochester Conference Series on Public Policy. An historical analysis of monetary policy rules”, in Taylor, John B. Monetary policy rules, Chicago: University of Chicago Press, ISBN 9780226791265. Housing and monetary policy”, in Reserve Bank of Kansas City, Housing, housing finance, and monetary policy: a symposium sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, August 30-September 1, 2007, Kansas City, Missouri: Reserve Bank of Kansas City, pp. The financial crisis and the policy response: an empirical analysis of what went wrong”, in Bank of Canada Staff, Festschrift in honour of David Dodge’s contributions to Canadian public policy: proceedings of a conference held by the Bank of Canada, November, 2008, Ottawa: Bank of Canada, pp. Getting off track: how government actions and interventions caused, prolonged, and worsened the financial crisis.
Ending government bailouts as we know them. Refocus the Fed on price stability instead of bailing out fiscal policy”. First principles: five keys to restoring America’s prosperity. The Statistical Analysis of Policy Rules”. Estimation and control of a macroeconomic model with rational expectations”, in Lucas, Jr. Macroeconomic policy in a world economy: from econometric design to practical operation. John that are central to understanding our macroeconomic experience of the past three decades—the Taylor curve, the Taylor rule, and the Taylor principle.
Remarks at the Conference on John Taylor’s Contributions to Monetary Theory and Policy. Solution and maximum likelihood estimation of dynamic nonlinear rational expectations models”. New York: Cambridge University Press, p. Rational’ expectations, the optimal monetary instrument, and the optimal money supply rule”. Upper Saddle River, New Jersey: Prentice-Hall, p.
The theory of new classical macroeconomics: a positive critique. What should the monetary authority do when prices are sticky? Staggered price and wage setting in macroeconomics”, in Taylor, John B. Woodford, Michael, Handbook of macroeconomics, Amsterdam New York: North-Holland Elsevier, pp. Remarks at the meeting of the Eastern Economic Association. NBER Working Paper 11874, December 2005.
Monetary policy rules and macroeconomic stability: evidence and some theory”. Bank of Canada Staff, Festschrift in honour of David Dodge’s contributions to Canadian public policy: proceedings of a conference held by the Bank of Canada, November, 2008, Ottawa: Bank of Canada, pp. How government created the financial crisis”. Why permanent tax cuts are the best stimulus”. New Keynesian versus old Keynesian government spending multipliers”. Effects of fiscal stimulus in structural models”.
An empirical analysis of the revival of fiscal activism in the 2000s”. This page was last edited on 2 December 2017, at 20:34. For a while I have been working on a paper on democracy, expert knowledge, and economics as a moral science. Those values are embedded in some of the basis concepts used but also in some of the assumptions in the theory-building. Pareto efficiency is not value-neutral, or why there are good reasons why one would not endorse the Pareto-criterion. Discussion of inequality necessarily involves our social and political values, but if inequality also entails inefficiency, those normative judgements are more easily agreed upon. The Pareto-criterion is the clearest case: if we can make some people better off without making anyone worse off, who could possibly object?