What are the lessons we learned -- and perhaps unlearned -- that permitted the American economy, once so convulsive, to grow in such a robust and sustained way for the last quarter of a century?
Economist John Taylor discusses today's financial crisis, which he labels the most "unusual" crisis since the Great Depression. He identifies a number of factors contributing to the crisis, but locates its origins in the monetary excesses of the Fed.
In outlining what the government should and should not do in response to the crisis, he concludes that it will be tragic if we forget all we have learned over the past two and a half decades about the importance of the private sector and the free market- Hoover Institution
Peter M. Robinson is a research fellow at the Hoover Institution, where he writes about business and politics, edits the Hoover Institution's quarterly journal, the Hoover Digest, and hosts Hoover's television program, "Uncommon Knowledge."
Robinson is also the author of three books: How Ronald Reagan Changed My Life; It's My Party: A Republican's Messy Love Affair with the GOP; and the best-selling business book Snapshots from Hell: The Making of an MBA.
John B. Taylor is the Mary and Robert Raymond Professor of Economics at Stanford University and the Bowen H. and Janice Arthur McCoy Senior Fellow at the Hoover Institution. He formerly served as the director of the Stanford Institute for Economic Policy Research, where he is now a senior fellow, and he was founding director of Stanford's Introductory Economics Center.
Taylor's academic fields of expertise are macroeconomics, monetary economics, and international economics. He is known for his research on the foundations of modern monetary theory and policy, which has been applied by central banks and financial market analysts around the world. He has an active interest in public policy.
John B. Taylor, an economics professor at Stanford University, weighs the risks of the Fed creating money to stimulate the economy, when the real problem is the uncertainty causing banks not to lend to each other.
"I'd say markets are clamoring for some clarity about policy," he says.
John B. Taylor, an economics professor at Stanford University, believes that temporary tax rates will not greatly affect spending behavior, but permanent cuts would lead to a "powerful stimulus" for the economy and also lead to job creation.