with Congressman Paul D. Ryan
The Federal Reserve's recent announcement that it will purchase $600 billion in Treasury securities has ignited a firestorm of criticism, opening a much-needed debate over the central bank's proper role in economic policy decisions...

Whether or not one believes that the €750bn European rescue plan will stabilise financial markets, its consequences for Europe’s economies are surely negative...

A new bankruptcy process is the right way to deal with failing financial institutions...

There is an ongoing policy debate about when and at what speed the Federal Reserve Bank should reduce its portfolio of mortgage-backed securities (MBS). . . .

Federal Reserve Board Chairman Ben Bernanke spent most of his speech to the American Economic Association on Jan. 3 responding to the critique that easy monetary policy during 2002-2005 contributed to the housing boom, to excessive risk taking, and thereby to the financial crisis. . . .

Thank you for the opportunity to provide testimony for this hearing on bankruptcy and non-bankruptcy alternatives for failing non-bank financial institutions...

Conventional question: did the government's quick intervention on Wall Street last year save us from another Great Depression?...

Is the American Recovery and Reinvestment Act of 2009 working?...

New federal budget numbers released last week by the Congressional Budget Office (CBO) ought to be a game-changer for Congress and the Obama administration...

The Taylor Rule -- the guideline for central bank interest-rate decisions -- has been the subject of a heated debate among Fed watchers this summer...

The Obama administration’s financial reform proposals would grant the Federal Reserve significant new powers...

The letters (July 27) on our July 20 op-ed on the complexity and pricing difficulty of toxic assets raise practical issues...

Despite trillions of dollars of new government programs, one of the original causes of the financial crisis -- the toxic assets on bank balance sheets -- still persists and remains a serious impediment to economic recovery...

Standard and Poor’s decision to downgrade its outlook for British sovereign debt from “stable” to “negative” should be a wake-up call for the US Congress and administration...

President Barack Obama has tried to reduce the perception of a rift between the United States and member nations of the Group of 20 over how to revive the global economy...

An explosion of money is the main reason, but not the only one, to be concerned about last week’s surprise decision by the Federal Reserve to increase sharply its holdings of mortgage backed securities and to start purchasing longer term Treasury securities...

Many are calling for a 9/11-type commission to investigate the financial crisis...

The incoming Obama administration and congressional Democrats are now considering a second fiscal stimulus package, estimated at more than $500 billion, to follow the Economic Stimulus Act of 2008...

John McCain's economic plan is designed from the ground up to raise incomes and create jobs for Americans - especially middle-class Americans - and get our economy moving again...

John McCain's tax policies are designed to create jobs, increase wages and allow all Americans -- especially those in the hard-pressed middle class -- to keep more of what they earn...

Turmoil in the US’s financial markets got the top billing in news reports about the recent meetings of the world’s leading international policymakers in Washington...

Effective foreign policy requires paying close attention to economics, not just security and politics...

Some in the new Congress want to ban the term “global war on terror..."

Even as Congress and the Bush administration debate the troop surge in Iraq, they should agree immediately to implement a surge on the financial front in the "war on terror."

Earlier this month, the House Committee on Oversight and Government Reform held a hearing that criticized the decision to ship American currency into Iraq just after Saddam Hussein’s government fell...

Last summer, I wrote a piece, "Lessons Learned from the Greenspan Era," for the Jackson Hole monetary conference, arguing that the remarkable U.S. economic performance since the early 1980s could extend well beyond the Greenspan era if the Fed followed certain policy principles: raise the fed funds rate by more than any incipient increase in the inflation rate; cut the funds rate when the economy weakens; commit to price stability; be predictable…

When finance ministers and central bank governors gather in Washington for the spring meeting of the International Monetary Fund later this week, they will be greeted with a host of new proposals for institutional change...

The recent policy shift in China from a pegged to a flexible exchange rate regime starts a new chapter in international finance, comparable to the dramatic end of the Bretton Woods system of pegged exchange rates in 1971...

People often ask me what it’s like to teach both introductory economics courses and Ph.D. level economics course in the same academic year...

This past weekend’s meeting of the G20 finance ministers and central bank governors in Korea ended with a rejection of calls for more fiscal stimulus. This is a marked change from their meeting held just over a month ago in Washington...

From about two years—from August 2007 to September 2009—fluctuations in the spread between dollar Libor and the overnight index swap (OIS) served as a valuable quantitative indicator of financial stress in the interbank loan market...

In a soon to be published paper, several economists at the International Monetary Fund report estimates of government spending multipliers which are much smaller than those previously reported by the U.S. Administration...

The euro's continued decline throughout last week (see chart) shows that this set-back was not only a harbinger, but also the first in sequence of negative market reactions...

My column published last Monday May 3 in the Wall Street Journal “How to Avoid a ‘Bailout Bill’” generated a lot of questions about the idea of a "Chapter 11F," which I argued is a needed alternative to bailouts...

The 3.2 percent growth rate of real GDP in the first quarter (released by BEA yesterday) confirms that the recovery is looking more U-shaped than V-shaped. But it also provides further evidence that the stimulus package of 2009 has had a small contribution to the recovery...

Three years ago, a study of low and declining prices on Iraq's debt by Michael Greenstone of MIT helped paint a bleak picture of the effectiveness of the surge, as, for example, in this November 2007 New York Times op-ed by Austan Goolsbee "In the Bond Market, a Bleak Prognosis for Iraq.". . .

Next Thursday March 25 the House Financial Services Committee will hold a hearing on how the Fed should exit from its quantitative easing. . . .

In his recent review in The New York Review of Books of my book Getting Off Track, Roger Alcaly makes a very interesting point about the “too low for too long” hypothesis, according to which the Fed helped cause the housing boom. . . .

The following is a reasonable summary, in my view, of the available evidence on the impacts of discretionary fiscal and monetary policy actions taken before, during, and after the recent financial crisis: . . .

The resilience of emerging market economies severely hit by the panic of 2008 is amazing, especially in comparison with the long emerging market crisis period of a decade ago. . . .

“Lessons from the Financial Crisis for Monetary Policy in Emerging Markets” was the title for the 2010 L.K. Jha Lecture, which I gave this week at the Reserve Bank of India in Mumbai. . . .

Last Friday Macroeconomic Advisers (MA), a forecasting firm, posted a blog entry responding to empirical work by me and others on the “stimulus act” of 2009. . . .

With the one year anniversary of the signing of the stimulus it is useful to review the facts and data as they came in during the year. . . .

America is sick of bailouts. . . .

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. . . .

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. . . .

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 the next 80 years. . . .

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. . . .

John Papola and Russ Roberts just put their Hayek versus Keynes rap video on youtube. . . .

New Yorker writer John Cassidy argues in a recent article that free market-oriented Chicago school thinking was largely responsible for the financial crisis . . . .

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 invlovment in the extension of credit to AIG" is a step in the right direction. . . .

Much continues to be written this week about whether interest rates were too low for too long in the period 2003-2005. . . .

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. . . .

Many are worried that the exploding Federal debt and the expanded Federal Reserve Balance sheet will lead to a large increase in inflation. . . .

On New Years Day I wrote a piece on the surprising increase in the number of references to the Taylor rule in 2009. Little did I know that two days later Federal Reserve Board Chairman Ben Bernanke would start off 2010 with a speech with 50 more references at the American Economic Association (AEA) meeting in Atlanta. . . .

Today the Financial Crisis Inquiry Commission announced its first public hearing, which will start at 9 am on January 13 and continue through January 14. The topic: Causes and Current State of the Financial Crisis. . . .

Some of the big questions looming about the Fed’s exit strategy are if, when, and at what pace the Fed should draw down its huge portfolio of mortgage backed securities (MBS). . . .

Surprisingly, the Taylor rule was referred to more frequently than ever in 2009. . . .

People ask how I think introductory economics teaching should change as a result of the financial crisis. . . .

Big Think is conducting a series of video interviews with economists, market participants, journalists, policymakers and others on the financial crisis to try to answer the pressing question of “what went wrong.” . . .

This past week we held a conference on Ending Government Bailouts As We Know Them. . . .

For years I compared it to flying a fighter jet where you have to anticipate the actions of the other pilots, and if you get it wrong you crash and burn in a great depression or a great inflation. . . .

With the consumption data released today--the day before Thanksgiving--we are reminded to give thanks that retail sales are at least growing not declining sharply as they were a year ago. . . .

We are hearing a lot these days about the disadvantages of free markets and the need for a greatly expanded role of government in the economy. . . .

This week was monetary policy week in Economics 1 at Stanford. . . .

A good way to assess this impact on risks is to look at the spread between interest rates on subordinated debt and senior debt at Fannie or Freddie. . . .

Stories this week in the Wall Street Journal, the New York Times and the Washington Post focus on how Senator Chris Dodd's new financial reform bill threatens the independence of the Federal Reserve. . . .

While the unemployment rate continues to rise--to 10.2 percent in October--the debate over the "jobs saved" concept also continues, most recently on last Sunday's Meet the Press with host David Gregory asking Treasury Secretary Timothy Geithner whether the concept is PR or Fact. . . .

My Forbes magazine column this week reviews the latest empirical evidence on why government actions and interventions--government failure rather than market failure--should be at the top of the list of what went wrong in the recent financial crisis...

In an op-ed in today's New York Times Harvard's Greg Mankiw gives a good example of how government transfer programs increase marginal tax rates...

Along with the news that real GDP growth improved from -0.7 percent in the second quarter to 3.5 percent in the fourth quarter, the Bureau of Economic Analysis (BEA) released detailed National Income and Product Account tables yesterday, which received little comment in the press today...

Fears of potential damage from the failure of a large financial institution has created a bailout mentality in which the U.S. government has committed many billions of dollars, intervened in the operations of scores of private firms, and caused excessive risk-taking...

Debate about the impact of the $787 billion stimulus continued this week...

I teach Economics 1 with an “audience response system” similar to the ones you see on TV game shows...

This was another week with a lot of commentary on the Taylor Rule, and I am grateful to Jon Hilsenrath of the Wall Street Journal for suggesting an interview with me on the subject and posting it on Wednesday...

Want to see an amazing illustration of how the game theory model of duopoly works?...

The awarding of the Nobel Prize in economics is always a teachable moment...

In their widely-cited Wall Street Journal column last week, Ian Bremmer and Nuriel Roubini argue that to prevent asset price bubbles in the future the Fed should focus on “properly calculating asset prices and the risk of asset bubbles according to the Taylor rule...

This cover design of Fuori Strada: Como lo Stato ha causato, prolungato e aggravato la crisi finanziaria, the just released Italian edition of Getting Off Track, says it all, and the economic policy lessons are the same in any language: Get back on the road...

Yesterday and today, three economists (Andrew Levin, Chris Erceg and Mike Kiley) who work on the staff of the Federal Reserve Board graciously hosted a big gathering of monetary economists from around the world...

Want to understand what really goes on behind the scenes of the supply and demand model?...

The supply and demand model, which students learn in the first week of Economics One, is a beautiful, powerful tool for investigating real world issues like the minimun wage, the subject of tomorrow's Wall Street Journal editorial...

The "free market" lectures--we had them last week at Stanford--are my favorites in Economics One...

I decided to invite a young guest lecturer to my Economics 1 class to help students think about the alarming federal debt charts and the exploding debt burden on future generations...

Two weekends ago the big news was the one-year anniversary of the Lehman Brothers bankruptcy and the ensuing panic...

As the G20 Leaders travel to Pittsburgh this weekend they should reconsider their April 2 decision “to treble the resources available to the International Monetary Fund (IMF) to $750 billion.”...

Today was the first lecture of thirty-five or so lectures I will give this fall in Stanford’s Economics 1, the namesake of this Blog...

Simple charts vividly demonstrate the immensity of the exploding debt problem now faced by the United States...

My recent Wall Street Journal column with John Cogan and Volker Wieland looked at the data available so far and concluded that there has been no noticeable impact...

Stanford University economist John Taylor talks with Bloomberg's Susan Li about the outlook for the global economy and central banks' monetary policies...

John B. Taylor discusses, with Tom Keene ways to end bailouts, Chapter 11F, and the European debt situation...

Some people calling financial reform a bailout proposal, with John Taylor, Stanford University economics professor...

What to do with the derivatives market, with Tim Ryan, SIFMA president & CEO and John Taylor, Stanford economics professor...

John Taylor, the Stanford University economist who created a rule for guiding monetary policy, talks with Bloomberg's Margaret Brennan about the outlook for Federal Reserve. . . .

It’s been a year and a half since the banking system came crashing down in the fall of 2008, forcing Merrill Lynch into the arms of Bank of America (NYSE: BAC), Wachovia to Wells Fargo (NYSE: WFC), and Washington Mutual to JPMorgan Chase (NYSE: JPM). . . .

It's been a long row to hoe since the economy entered the Great Recession. . . .

A look ahead of the Fed head's prepared exit plan, with CNBC's Steve Liesman and John Taylor, Stanford University discusses his own testimony. . . .

How well are our leaders — including Federal Reserve chair Ben Bernanke — managing the aftermath of the financial crisis? . . .

How well did our leaders handle the financial crisis? . . .

Richard Epstein and John Taylor explain why it is misleading to blame the free market for the financial crisis. . . .

What went wrong with the U.S. economy in the 21st century? . . .

After introducing the opposing approaches to economics of John Maynard Keynes and Milton Friedman, economists Richard Epstein and John Taylor discuss U.S. monetary policy from the 1970s onward. . . .

In the latest installment in his series of reports making sense of financial news, Paul Solman explains how interest rates are set, with a little help from economic country musician Merle Hazard. . . .

Discussing whether Ben Bernanke is good for the markets, with Donald Luskin, Trend Macro; Peter Navarro, University of California and John Taylor, Stanford University. . . .

A conversation with the Stanford University Economics Professor. . . .

Insight on why full transparency on the AIG bailout with John Taylor, Stanford University professor. . . .

Fighting back against Fed chief Ben Bernanke's policy, with John Taylor, Stanford University economics professor. . . .

Joining me to discuss on last night's Kudlow Report was distinguished Stanford economics professor John Taylor, creator of the Taylor Rule. . . .

John Taylor, Stanford University economist and Treasury Department official during the Bush administration, has been in the news of late for two reasons...

Discussing household net worth turned positive for the first time in two years, with John Taylor, Stanford University economics professor and CNBC's Steve Liesman...

James Freeman interviews Stanford professor John Taylor about how Washington created the credit meltdown...

Insight on the jobs front, with John Taylor, Hoover Institution; and CNBC's Steve Liesman & Larry Kudlow...

Hoover Institutions John Taylor on why the deficit poses a systemic risk...

Today at 3:15pm in the Law School, Professors William Perry and David Kennedy will present to the Faculty Senate on the status of Reserve Officer Training Corps (ROTC) program on campus. . . .

This paper was originally prepared for a hearing at the House Committee on Financial Services on “Unwinding Emergency Federal Reserve Liquidity Programs and Implications for Economic Recovery,” where I was invited to be a witness. . . .

This paper documents the evolution of long-run inflation expectations and models the stance of monetary policy from 1965 to 1980. . . .

Hoover's working groups and task forces produce contemporary material on subjects ranging from global economic issues to national security and from energy policy to education...

At their last meeting on April 2, 2009, in London, the leaders of the G-20 nations agreed "to treble the resources available to the International Monetary Fund (IMF) to $750 billion."...

This week Vice President Joe Biden touted the economic stimulus package, saying that the $787 billion stimulus has created or saved 150,000 jobs in its first 200 days...

John Taylor of Stanford University talks with EconTalk host Russ Roberts about the fundamental causes of the financial crisis of 2008...

John Taylor, an economics professor at Stanford University, talks with Bloomberg Carol Massar and Mark Crumpton about the potential for a second U.S. economic stimulus package...

Paul Krugman and John B. Taylor debate the origins of the financial crisis and the proposed health care plan...

Fmr. Treasury Undersecretary John Taylor (2001-2005) spoke about the economy, including the deficit, and the stimulus passed by the Obama Administration...

John Taylor, fmr. Under Secretary of Treasury of International Affairs; James Bianco, of Bianco Researcy; and the CNBC news team discuss the bond market and the Fed...

Taylor on Geithner and North Korea...

"Just -- and I hope you were able to hear of some of the points that Peter was making job reaction what what what's coming out of London again."...

Interview with Former Treasury Undersecretary John Taylor, Author of "Getting Off Track" (Bloomberg News)...

" Okay let's get John Taylor out of Stanford the former undersecretary...

Leaders of the Group of 20 (G20) rich and developing countries meet in London on Thursday to discuss ways to tackle the global economic crisis...

John Taylor, economics professor at Stanford University, talks with Bloomberg's Haslinda Amin about U.S. financial system regulation...

Author John B. Taylor discusses his book "Getting Off Track -- How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis," with Reason.tv's Michael C. Moynihan...

John B. Taylor, professor of economics at Stanford University, challenges the conventional wisdom that it was an excess of deregulation that precipitated our current financial crisis...

Hour 3 - Hugh talks health care, and especially prostate cancer screening after a very misleading couple of news stories with Dr. Kenneth Tokita, legal news of the week with the Smart Guys, and economics with Hoover Institute scholar, Dr. John Taylor...

Perils of Populism, Blame Washington, Stem Cell Trial, Dealing With Disabilities, D. C. Thriller King, 6th Anniversary of Shock and ...

A look at what has happened in the year since Bear Stearns collapsed, with John B. Taylor, former Treasury undersecretary and author of "Getting Off Track: How Government Actions and Interventions Caused, Prolonged and Worsened the Financial Crisis."...

Renewed interest in fiscal policy has increased the use of quantitative models to evaluate policy...

Today, on the Ed Morrissey Show (3 pm ET), we welcome John Taylor of the Hoover Institution and Stanford University to discuss his new book, Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis...

President Obama's budget projects the federal government will borrow $2.6 trillion this year and another $1.1 trillion in 2010...

The Government's $42 billion stimulus package is an attempt to prevent Australia suffering the same economic fate as Japan...

Pointing blame at the government, with John Taylor, Stanford University professor of economics and CNBC's Erin Burnett...

The U.S. Senate is expected to approve an $838 billion economic stimulus bill on Tuesday...

A more concrete plan for that money, with John Taylor former undersecretary, international affairs and Rep. Paul Ryan, R-WI...

The first ten minutes of this Planet Money podcast I talk about what it was like to have Obama on the GMU campus proposing to spend a lot of my money and yours...

John Taylor says it will be tragic if we forget all we learned over the past two-and-a-half decades about the importance of the private sector and the free market...

John Taylor describes four economic stimuli that will work to solve the financial crisis...

John Taylor describes what the government should and should not do in response to the financial crisis...

John Talyor says the origin of today’s financial crisis can be located in the monetary excesses of the Greenspan Fed, although there were many other contributing factors...

Economist John Taylor discusses the causes of today’s financial crisis — which he labels the most “unusual” crisis since the Great Depression...

Thank you, Chairman Conrad, Ranking Member Gregg, and other members of the Senate Budget Committee for giving me the opportunity to testify about the state of the economy and options for a second fiscal stimulus...

John Taylor of Stanford University talks about the Taylor Rule, his description of what the Fed ought to do and what it sometimes actually does, to keep inflation in check and the economy on a steady path...

Washington Post staff writers Alec Klein and Zach Goldfarb were online Monday, June 16 at 12:30 p.m. ET with guest John Taylor, Stanford economics professor, to discuss their three-part narrative series about the U.S. housing bust...

Having a concept named after you is as much a mark of honor in economics as it is in other sciences...

Republican presidential candidate John McCain is campaigning in California over the next few days....

Should the next president let the Bush tax cuts expire, on the theory that the government will need higher tax revenues to meet a rising entitlement burden?

Hot-button economic issues for the 2008 campaign season include trade deficits, a weak dollar, and high household and federal debt...

Bush says an economic-stimulus package comprised of tax rebates is necessary to get the economy going again...

Much of the recent economic and stock market indigestion is the result of the sub-prime credit crisis that erupted last summer...

Are we, in fact, in a recession?

On the eve of Super Tuesday, The Daily interviewed three professors currently advising presidential contenders: John Taylor, a professor of economics and an adviser to Senator John McCain (R-AZ), and Larry Marshall and Mariano-Florentino Cuellar, both law professors helping Senator Barack Obama (D-Ill.)...

Treasury Secretary Henry Paulson said on Tuesday the United States was impatient for forceful Chinese action to cut trade deficits but Chinese Vice Premier Wu Yi said Beijing would not yield to pressure...

This week, Congress is hearing from labor interests and economists, urging different agendas for U.S. trade with China...

Frontpage Interview’s guest today is John B. Taylor, a senior fellow at the Hoover Institution and a professor of economics at Stanford...

John B. Taylor, a senior fellow at the Hoover Institution and an economics professor at Stanford University, was a key player in the international financial war against terrorism after 9/11...

John B. Taylor, a senior fellow at the Hoover Institution and an economics professor at Stanford University, was a key player in the international financial war against terrorism after 9/11...

Former Treasury Undersecretary John B. Taylor reveals the true extent of the financial battle against terrorism since September 11, 2001 in his compelling new book GLOBAL FINANCIAL WARRIORS: The Untold Story of International Finance in the Post-9/11 World [W.W. Norton & Company; January 8, 2007; $26.95 Cloth] – a boots-on-the ground view of the complex challenges faced by America’s money minders in the wake of the country’s worst-ever terror attack. John B. Taylor was Treasury Under Secretary for International Affairs from 2001 to 2005. The Bowen H. and Janice Arthur McCoy Senior Fellow at the Hoover Institution, he is the Mary and Robert Raymond Professor of Economics at Stanford University. Now available at www.wwnorton.com and at bookstores...