Economic Theory

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Twentieth anniversary of a rule that transformed monetary policy
In the News

Introducing The Atlanta Fed's Taylor Rule Utility

featuring John B. Taylorvia Federal Reserve Bank of Atlanta
Thursday, September 8, 2016

Simplicity isn't always a virtue, but when it comes to complex decision-making processes—for example, a central bank setting a policy rate—having simple benchmarks is often helpful. As students and observers of monetary policy well know, the common currency in the central banking world is the so-called "Taylor rule."

Analysis and Commentary

Scott Alexander Is An Economist

by David R. Hendersonvia EconLog
Thursday, September 8, 2016

So many other bloggers called attention to Scott Alexander's outstanding post about why the price of EpiPen is so high that I didn't feel the need to.

Analysis and Commentary

Response To Professor Stephen Gordon

by David R. Hendersonvia EconLog
Wednesday, September 7, 2016

Last month, I posted about Professor Stephen Gordon's confusion between a tax and a price. Professor Gordon responded, and I responded to him.

Interviews

Michael Boskin On The John Batchelor Show

interview with Michael J. Boskinvia The John Batchelor Show
Tuesday, September 6, 2016

Hoover Institution fellow Michael Boskin discusses his Project Syndicate article "Clintonomics vs. Trumponomics."

Federal Reserve
In the News

Fed Monetary Policy Causes A Recession Roller Coaster

quoting John B. Taylorvia US News and World Report
Tuesday, September 6, 2016

The way the Fed does business is too unpredictable.

In the News

The Federal Funds Rate Should Be... 2.25%?

featuring John B. Taylorvia Seeking Alpha
Tuesday, September 6, 2016

The Taylor Rule posits a formulaic solution to where central banks should set their overnight rates with respect to inflation, output, and targeted equilibrium rates.

Analysis and Commentary

Davenport: Why Isn’t Anyone Talking About The National Debt?

by David Davenportvia Townhall
Tuesday, September 6, 2016

In a presidential campaign, it’s amazing that no one is talking about the national debt. Well, actually someone is: the Congressional Budget Office issued a report this summer and we should be shocked.

Analysis and Commentary

Misleading Statistics

by Thomas Sowellvia Creators Syndicate
Tuesday, September 6, 2016

Mark Twain famously said that there were three kinds of lies — "lies, damned lies, and statistics." Since this is an election year, we can expect to hear plenty of all three kinds.

In the News

Macro Musings Podcast: Peter Ireland

quoting John B. Taylorvia Seeking Alpha
Monday, September 5, 2016

My latest Macro Musings podcast is with Peter Ireland. Peter is a professor of economics at Boston college, a research associate at the National Bureau of Economic Research, and a member of the shadow open market committee. He has also been a visiting scholar at numerous Federal Reserve banks. 

In the News

G20 Summit Facing Systemic Worldwide Challenge After The 2008 Meltdown

quoting Michael Spencevia Economic Times (India)
Saturday, September 3, 2016

The eleventh summit of the Group of Twenty (G20) major economies in Hangzhou, China, on September 4-5 is happening amid pessimism about global growth and prosperity.

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Economic Policy Working Group

 
The Working Group on Economic Policy brings together experts on economic and financial policy to study key developments in the U.S. and global economies, examine their interactions, and develop specific policy proposals.

Milton and Rose Friedman: An Uncommon Couple