Taylor challenges efficacy of central bank independence

johnbtaylor

Central banks' performance deteriorates if they cannot be made to adhere to a rules-based framework, according to John Taylor, a professor of economics at Stanford University.

In a paper published by the Stanford Institute for Economic Policy Research in January, Taylor measures central bank performance based on fluctuations in output and inflation, focusing on the Federal Reserve. He finds that independence in the absence of a rules-based framework does not lead to good economic outcomes, as

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