Overview
John B. Taylor is a macroeconomist at Stanford University (and former U.S. Under Secretary of the Treasury for International Affairs) known for monetary-policy rules, staggered wage/price contracts (Taylor contracts), and rational-expectations macroeconometrics. He is the originator of the Taylor rule.
Key Contributions / Features
- The Taylor rule — Taylor (1993): Proposed the representative interest-rate rule r=p+0.5y+0.5(p−2)+2 (funds rate responds 1.5 to inflation, 0.5 to the output gap; 2% inflation target, 2% equilibrium real rate) that closely fit 1987–1992 Fed policy, and argued rules should be a preserved benchmark even when not followed mechanically. See Taylor Rule and Taylor (1993).
- Staggered contracts (Taylor 1979, 1980): Overlapping multi-period wage/price setting, a foundation of New Keynesian nominal rigidity.
- Editor, Monetary Policy Rules (1999): Assembled the research program evaluating interest-rate rules across models.
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