Category: Supply & Demand
-
Why the Fed’s Pause on Interest Rate Hikes is a Mistake
When John Taylor, my colleague at the Hoover Institution, developed the Taylor rule for monetary policy, he evaluated the effectiveness of various inflation-fighting practices based on patterns observed over many years around the world. The Taylor rule is frequently cited by economists because it works. The rule is based on theory and evidence, and it…
-
Is the Fed Making the Same Mistakes as in the 1970s with Inflation?
John Taylor, a colleague at the Hoover Institution, developed the Taylor rule for monetary policy by analyzing years of inflation-fighting around the world and evaluating the effectiveness of different practices. The rule is frequently cited by economists because it works. Based on theory and evidence, the Taylor rule tells us where the interest rate needs…
-
The Taylor Rule and the Current Inflation Rate: Should the Fed Pause Interest Rate Increases?
When John Taylor created the Taylor rule for monetary policy, he was able to evaluate the effectiveness of different practices by looking back at years of inflation-fighting around the world. The Taylor rule is frequently cited by economists for its accuracy in determining where the interest rate needs to be to fight inflation. Currently, the…