Monetary Policy: Rules vs. Discretion with John B. Taylor: Perspectives on Policy

[@onionsucc8465]

Jesus, the quality here is wild for how small this channel is

[@mayegunpritchard1592]

The quality of the video and its content is flawless.

[@stevenedison4164]

instaBlaster.

[@rajuchekuri8331]

No wonder professor Taylor is in contention for Nobel Prize in economics. Not many books deal with rules based vs discretionary monetary policy w.r.t TAILOr 's rule. Thank you professor 🙏

[@mysillyusername]

He's not a serious contender no, no more than Laffer and his curve. And his extreme political views certainly wouldn't help him should he be a contender, which he's not.

[@emmanuelameyaw9735]

A lot of books deal with it. Where did you go to school?😀

[@jivepatrol6833]

I went on the FRED St. Louis database and developed a plot of the Taylor Rule vs. Fed Funds rates using data all the way back to 1955. (1) there has never been a wider gap between the two - meaning the Fed is way behind on rate increases and (2) Taylor Rule is around 10-11% and Fed Funds = 3.0-3.25%. On the Atlanta Fed site there is an excellent utility tool comparing different assumptions with the Taylor Rule and modifications to the basic formula. This sensitivity analysis is available for all to see and even the most optimistic case points to a need for Fed Funds to exceed 8%. Bottom line - I agree with Dr. Taylor. The Fed should have clear models and "metrics" to gauge and adjust monetary policy. Businesses, governments and individuals could better plan their financial futures and this would greatly reduce boom/bust cycles. Comparing the Fed Funds rate to Taylor Rule, it is obvious the Fed has depressed interest rates for the entirety of the 21st century! Now we are on the cusp of another worldwide financial melt down. It is extremely disappointing the FOMC members look past the Taylor Rule and also the work of researchers at the various Fed branches. Too many FOMC members are out granting interviews to the press. These interviews as parsed and markets quickly react - creating unnecessary speculation and volatility. The only person that should be speaking is Powell. Thank you for a most informative video and forecasting model of where rates should be at a given time! 🙂🙂

[@drumpfbad5258]

You guys deserve way more subscribers

[@62294838]

Jesus. John Taylor explaining Taylor Rule.

[@meloniep2374]

IKR

[@iamgrant]

Amazing video

[@exchequerguy4037]

I would go even further and peg both fiscal and monetary policy to gold. Monetary being the price of gold cannot deviate more than 5% in any given year. The other is having a flat tax that kicks in at the price of 600 grams of gold. Then the government has a real stake in keeping the dollar sound.

[@eugenecrocker7062]

The 2007 and 2008 fiasco was bailing out companies to big to fail, before that we had the car companies that needed loans to keep going. That money was paid back to the government from the car companies and everything worked correctly. The big banks and financial companies that caused the problems in 2007 and 2008 took the monies they received and spent it in Europe and gave all their top executives big bonuses. The monies were never paid back so it ended up on the backs of all Americans rich and poor. This caused the biggest debt the US had ever had and the properties lost value. All the people that caused the problem walked away with millions of dollars and the Federal Reserve did nothing about it, neither did our government. This is how we started down the primrose path. Then in 2016 president Trump was bringing the economy back to the USA, along with production of goods. The Chinese government saw this as a problem for their economy. This is why the release of the virus that ended up causing Covid 19. Causing the world pandemic because of false information being spread throughout the world, by US and China. Everything got shut down by President Trump because he believed the Democrats that were running the CDC and FDA. Had he kept his head and allowed things to happen naturally, the world would have been better off. The problem we had in this country was that the Democrat leftist wanted more control than they deserve. They had China help them to win the election in 2020 causing the dumbest person on earth to become powerful. He immediately shut down the oil processing business, claiming climate control was needed. This caused a spike in the cost of Gas for the companies transporting our good all over the country. That caused a spike in the cost of all the materials being used by Americans. This is what the cause and effect that caused the inflation we have here today along with him handing out monies like a drunken sailor. The Federal Reserve did what it always does to curb inflation a day late and a dollar short. This caused even more inflation instead of curbing it. That my folks is the answer to inflation world wide, When it happens in the US it happens around the world. This allowed the Chinese to stop their production of goods even causing more rising prices. The big deal is that the Democrats along with the Federal Reserve and the Democrats caused the inflation in 2021, which hasn't stopped yet and will continue to grow as long as nothing is done about the Democrats here in the USA.

[@SwordsmanRyan]

Technocracy is always held back because we allow voting. The hoi polloi demand changes that don’t actually help.

[@adityarazpokhrel7626]

Thank you sir

[@baheejatariq1826]

Awesome!!!

[@kefri2944]

How I wish my govt 🇰🇪 , could employ a monetary policy to reduce our unemployment gap and inflation prices

[@janeleonard985]

Or it could just stop meddling and let us have a free market Also, first