John B. Taylor

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John B. Taylor bigraphy, stories - American economist

John B. Taylor : biography

December 8, 1946 –

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.

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. He taught at Columbia University from 1973–1980 and the Woodrow Wilson School and Economics Department of Princeton University from 1980–1984 before returning to Stanford. He has received several teaching prizes and teaches Stanford’s introductory economics course as well as Ph.D. courses in monetary economics.Curriculum vitae, John B. Taylor http://www.stanford.edu/~johntayl/cv/TaylorCV-Jan-2012.pdf

In research published in 1979 and 1980 he developed a model of price and wage setting—called the staggered contract model—which served as an underpinning of a new class of empirical models with rational expectations and sticky prices—sometimes called new Keynesian models.Taylor, John B. (1979) “Staggered Wage Setting in a Macro Model,” American Economic Review, Papers and Proceedings, 69 (2), May, pp. 108-113, Reprinted in N. Gregory Mankiw and David Romer (Eds.) New Keynesian Economics, MIT Press, Cambridge, 1991. Taylor, John B. (1980) “Aggregate Dynamics and Staggered Contracts,” Journal of Political Economy, 88 (1), February, pp. 1-23. In a 1993 paper he proposed the Taylor rule,Taylor. John B. (1993) “Discretion Versus Policy Rules in Practice,” Carnegie-Rochester Series on Public Policy, North-Holland, 39, pp. 195-214. 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. He has been active in public policy, serving as the Under Secretary of the Treasury for International Affairs during the first term of the George W. Bush Administration. His book Global Financial Warriors chronicles this period.Taylor, John B, (2007) Global Financial Warriors: The Untold Story of International Finance in the Post- 9/11 World, W.W. Norton. 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.

In 2012 he was included in the 50 Most Influential list of Bloomberg Markets Magazine. Thomson Reuters lists Taylor among the ‘citation laureates’ who are likely future winners of the Nobel Prize in Economics.

Academic contributions

Taylor’s research—including the staggered contract model, the Taylor rule, and the construction of a policy tradeoff (Taylor) curveTaylor, John B, (1979) “Estimation and Control of a Macroeconomic Model with Rational Expectations,” Econometrica, 47 (5), September, pp. 1267-1286. Reprinted in R.E. Lucas and T.J. Sargent (Eds.) Rational Expectations and Econometric Practice, University of Minnesota Press, 1981 employing empirical rational expectations modelsTaylor, John B. (1993) Macroeconomic Policy in a World Economy: From Econometric Design to Practical Operation, W.W. Norton–has had a major impact on economic theory and policy.Ben Bernanke refers to the “three concepts named after John that are central to understanding our macroeconomic experience of the past three decades–the Taylor curve, the Taylor rule, and the Taylor principle.” in “Opening Remarks,” Conference on John Taylor’s Contributions to Monetary Theory and Policy Federal Reserve Chairman Ben Bernanke has said that Taylor’s “influence on monetary theory and policy has been profound,”Bernanke, Ben (2007), , Remarks at the Conference on John Taylor’s Contributions to Monetary Theory and Policy. and Federal Reserve Vice Chair Janet Yellen has noted that Taylor’s work “has affected the way policymakers and economists analyze the economy and approach monetary policy."Yellen, Janet (2007), , Remarks at the Conference on John Taylor’s Contributions to Monetary Theory and Policy.