John B. Taylor

John TaylorTaylor, John B.
John Brian Taylor (born December 8, 1946) is the Mary and Robert Raymond Professor of Economics at Stanford University, and the George P. Shultz Senior Fellow in Economics at Stanford University's Hoover Institution.wikipedia
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Hoover Institution

HooverHoover Institution archivesHoover Institution Press
John Brian Taylor (born December 8, 1946) is the Mary and Robert Raymond Professor of Economics at Stanford University, and the George P. Shultz Senior Fellow in Economics at Stanford University's Hoover Institution.
The institution has been a place of scholarship for individuals who previously held high-profile positions in government, such as George Shultz, Condoleezza Rice, Michael Boskin, Edward Lazear, John B. Taylor, Edwin Meese, and Amy Zegart—all Hoover Institution fellows.

Taylor rule

ruleTaylorTaylor rates
In a 1993 paper he proposed the Taylor rule, intended as a recommendation about how nominal interest rates should be determined, which then became a rough summary of how central banks actually do set them.
The rule was first proposed by John B. Taylor, and simultaneously by Dale W. Henderson and Warwick McKibbin in 1993.

George P. Shultz

George ShultzGeorge SchultzShultz
John Brian Taylor (born December 8, 1946) is the Mary and Robert Raymond Professor of Economics at Stanford University, and the George P. Shultz Senior Fellow in Economics at Stanford University's Hoover Institution.
In April 1998, Shultz hosted a meeting at which George W. Bush discussed his views with policy experts including Michael Boskin, John Taylor and Condoleezza Rice, who were evaluating possible Republican candidates to run for president in 2000.

50 Most Influential (Bloomberg Markets ranking)

50 Most InfluentialBloomberg 50 most influential people in global finance13th-Most-Influential Person in the World
In 2012 he was included in the 50 Most Influential list of Bloomberg Markets Magazine.
Policy Shapers: Janet Yellen (1), Xi Jinping (2), Barack Obama (6), Angela Merkel (9), Narendra Modi (13), Mario Draghi (14), Paul Krugman (30), Wang Qishan (33), John Taylor (43), George Osborne (45)

Shady Side Academy

Born in Yonkers, New York, he graduated from Shady Side Academy and earned his A.B. from Princeton University in 1968 and Ph.D. from Stanford in 1973, both in economics.
John B. Taylor (1964), Under Secretary of the Treasury for the George H. W. Bush administration

Taylor contract (economics)

Taylor modelstaggered contractstaggered contract model
Taylor then developed the staggered contract model of overlapping wage and price setting, which became one of the building blocks of the New Keynesian macroeconomics that rebuilt much of the traditional macromodel on rational expectations microfoundations.
The Taylor contract or staggered contract was first formulated by John B. Taylor in his two articles, in 1979 "Staggered wage setting in a macro model'. and in 1980 "Aggregate Dynamics and Staggered Contracts". In its simplest form, one can think of two equal sized unions who set wages in an industry. Each period, one of the unions sets the nominal wage for two periods (i.e. it is constant over the two periods). This means that in any one period, only one of the unions (representing half of the labor in the industry) can reset its wage and react to events that have just happened. When the union sets its wage, it sets it for a known and fixed period of time (two periods). Whilst it will know what is happening in the first period when it sets the new wage, it will have to form expectations about the factors in the second period that determine the optimal wage to set. Although the model was first used to model wage setting, in new Keynesian models that followed it was also used to model price-setting by firms.

New Keynesian economics

New KeynesianNew Keynesian economistNew Keynesian macroeconomics
Taylor then developed the staggered contract model of overlapping wage and price setting, which became one of the building blocks of the New Keynesian macroeconomics that rebuilt much of the traditional macromodel on rational expectations microfoundations.
This contrasts with John B. Taylor's model where the nominal wage is constant over the contract life, as was subsequently developed in his two articles, one in 1979 "Staggered wage setting in a macro model'. and one in 1980 "Aggregate Dynamics and Staggered Contracts". Both Taylor and Fischer contracts share the feature that only the unions setting the wage in the current period are using the latest information: wages in half of the economy still reflect old information. The Taylor model had sticky nominal wages in addition to the sticky information: nominal wages had to be constant over the length of the contract (two periods). These early new Keynesian theories were based on the basic idea that, given fixed nominal wages, a monetary authority (central bank) can control the employment rate. Since wages are fixed at a nominal rate, the monetary authority can control the real wage (wage values adjusted for inflation) by changing the money supply and thus affect the employment rate.

Nominal rigidity

stickysticky pricesprice stickiness
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.
Two commonly used time-dependent models are based on papers by John B. Taylor and Guillermo Calvo.

Council of Economic Advisers

President's Council of Economic AdvisersWhite House Council of Economic AdvisersChair of the Council of Economic Advisers
He was a member of the President's Council of Economic Advisors during the George H. W. Bush Administration and Senior Economist at the Council of Economic Advisors during the Ford and Carter Administrations.
John B. Taylor 1989–1991

Edmund Phelps

Edmund S. PhelpsPhelpsPhelps Volume
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.
In 1971, Phelps moved to the Economics Department at Columbia University, which also included future Nobel prize winners William Vickrey and James J. Heckman (future laureate Robert Mundell joined three years later), as well as Phoebus Dhrymes, Guillermo Calvo and John B. Taylor.

Monetary policy

monetarymonetary policiesunconventional monetary policy
Taylor’s research on monetary policy rules traces back to his undergraduate studies at Princeton.
The rule was proposed by John B. Taylor of Stanford University.

Policy-ineffectiveness proposition

policy ineffectiveness propositionmacroeconomic policy useless for stabilization
This was important because Thomas Sargent and Neil Wallace had argued that rational expectations would make macroeconomic policy useless for stabilization; the results of Taylor, Phelps, and Fischer showed that Sargent and Wallace's crucial assumption was not rational expectations, but perfectly flexible prices.
The New Keynesian economists Stanley Fischer (1977) and Edmund Phelps and John B. Taylor (1977) assumed that workers sign nominal wage contracts that last for more than one period, making wages "sticky".

Causes of the United States housing bubble

then directly led to
Particularly, he focuses on the Federal Reserve which, under Alan Greenspan, a personal friend of Taylor, created "monetary excesses" in which interest rates were kept too low for too long, which then directly led to the housing boom in his opinion.
According to some, such as John B. Taylor and Thomas M. Hoenig, "excessive risk-taking and the housing boom" were brought on by the Federal Reserve holding "interest rates too low for too long".

Quantitative easing

credit easingQEQE3
He cautioned that the Fed should move away from quantitative easing measures and keep to a more static, stable monetary policy.
Economists such as John Taylor believe that quantitative easing creates unpredictability.

List of Stanford University people

awards givenMembers of Stanford University's Economics DepartmentNotable Stanford alumni
Members of Stanford University's Economics Department
John B. Taylor (born 1946), economist, Hoover Fellow, developed the Taylor rule, Under Secretary of the Treasury for International affairs

Under Secretary of the Treasury for International Affairs

Under Secretary for International AffairsUnder Secretary of the Treasury (International Affairs)Under Secretary, US Treasury
Notable former Under Secretaries include Paul Volcker, David H. McCormick, Timothy D. Adams, John B. Taylor, Timothy F. Geithner, David Mulford, and Lawrence H. Summers.

Stanford University

StanfordLeland Stanford Junior UniversityStanford Cardinal
John Brian Taylor (born December 8, 1946) is the Mary and Robert Raymond Professor of Economics at Stanford University, and the George P. Shultz Senior Fellow in Economics at Stanford University's Hoover Institution.

Yonkers, New York

YonkersYonkers, NYYonkers, N.Y.
Born in Yonkers, New York, he graduated from Shady Side Academy and earned his A.B. from Princeton University in 1968 and Ph.D. from Stanford in 1973, both in economics.

Bachelor of Arts

B.A.BAA.B.
Born in Yonkers, New York, he graduated from Shady Side Academy and earned his A.B. from Princeton University in 1968 and Ph.D. from Stanford in 1973, both in economics.

Princeton University

PrincetonCollege of New JerseyPrinceton College
Born in Yonkers, New York, he graduated from Shady Side Academy and earned his A.B. from Princeton University in 1968 and Ph.D. from Stanford in 1973, both in economics.

Doctor of Philosophy

Ph.D.PhDPh.D
Born in Yonkers, New York, he graduated from Shady Side Academy and earned his A.B. from Princeton University in 1968 and Ph.D. from Stanford in 1973, both in economics.

Economics

economiceconomisteconomic theory
Born in Yonkers, New York, he graduated from Shady Side Academy and earned his A.B. from Princeton University in 1968 and Ph.D. from Stanford in 1973, both in economics.