Macro Policy Should Be Less Interventionist, More Rules-Based, and More Predictable

(p. 165) This article reviews the role of monetary and fiscal policy in the financial crisis and draws lessons for future macroeconomic policy. It shows that policy deviated from what had worked well in the previous two decades by becoming more interventionist, less rules-based, and less predictable. The policy implications are thus that policy should “get back on track.”

For the full article, from which the above abstract is quoted, see:
Taylor, John B. “Getting Back on Track: Macroeconomic Policy Lessons from the Financial Crisis.” Federal Reserve Bank of St. Louis Review 92, no. 3 (May-June 2010): 165-76.

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