Taylor’s Rule: How John B. Taylor Condensed a Mass of Complicated Theory about Monetary Policy into a Single Equation
Publication Date: January 2008
Series: Hoover Digest
Keywords: Economy; John B. Taylor; The Taylor Rule
Coverage: United States
The Taylor rule is a simple equation that Hoover senior fellow and Stanford economist John B. Taylor propounded in 1992 to describe the response of the Fed’s interest-rate target to inflation and business cycles. Now it has been celebrated; a conference on “John Taylor’s Contributions to Monetary Theory and Policy” was held at the Federal Reserve Bank of Dallas in October 2007.
This article chronicles Taylor's economic studies from his undergraduate years at Princeton in the mid-1960s to his works at Stanford and as an economic adviser to the Republicans in present-day 2008.