John B. Taylor – författare

An argument that a rules-based reform of the international monetary system, achieved by applying basic economic theory, would improve economic performance.

In this book, the economist John Taylor argues that the apparent correlation of monetary policy decisions among different countries—largely the result of countries'' concerns about the exchange rate—causes monetary policy to deviate from effective policies that stabilize inflation and the economy. He argues that a rules-based reform of the international monetary system, achieved by applying basic economic theory, would improve economic performance.

Taylor shows that monetary polices in recent years have been deployed either defensively, as central banks counteract forces from abroad that affect the exchange rate, or offensively, as central banks attempt to move the exchange rate to gain a competitive advantage. Focusing on the years from 2005 to 2017, he develops an empirical framework to examine two monetary policy instruments: the policy interest rate (the more conventional of the two) and the size of the balance sheet. He finds that an international contagion in central bank decisions about the policy interest rate has accentuated the deviation from standard interest rate rules that have worked in the past. He finds a similar contagion in decisions about the size of the balance sheet. By considering a counterfactual policy in the estimated model, Taylor is able to estimate by how much the policy of recent years has increased exchange rate volatility. After several rounds of monetary actions and reactions aimed at exchange rates, Taylor finds, the international monetary system is left with roughly the same interest rate configuration, but much larger balance sheets to unwind.

This handbook aims to provide a survey of the stet of knowledge in the broad area that includes the theories and facts of economic growth and economic fluctuations, as well as the consequences of monetary conditions. Macroeconomics underwent a evolution in the 70s and 80s due to the introduction of the methods of rational expectations, dynamic optimization, and general equilibrium analysis into macroeconomic models, to the development of new theories of economic fluctuations, and to the introduction of sophisticated methods for the analysis of economic time series. These developments were both important and exciting. However, the rapid change in methods and theories led to considerable-disagreement, especially in the 80s, as to whether there was any core of common beliefs, even about the defining problems of the subject, that united macroeconomists any longer. The 90s have also been exciting, but for a different reason. Modern methods of analysis have progressed to the point where they are now much better able to address practical or substantive macroeconomic questions - whether traditional, new, empirical, or policy related. Indeed, it is no longer necessary to choose between more powerful methods and practical policy concerns. The editors believe that both the progress and the focus on substantive problems has led to a situation in macroeconomics where the area of common ground is considerable, though they cannot yet announce a "new synthesis" that could be endorsed by most scholars working in the field. For this reason this handbook is organized around substantive macroeconomic problems, and not around alternative methodological approaches or schools of thought. The extent to which the field has changed over the past decade is considerable. This work is a response to the need for the survey of the current state of macroeconomics.

This text aims to provide a survey of the state of knowledge in the broad area that includes the theories and facts of economic growth and economic fluctuations, as well as the consequences of of monetary and fiscal policies for general economic conditions.

This text aims to provide a survey of the state of knowledge in the broad area that includes the theories and facts of economic growth and economic fluctuations, as well as the consquences of monetary and fiscal policies for general economic conditions.