The Taylor Rule Mechanism

As quoted from Wikipedia.

John B. Taylor (born December 8, 1946) is an economics professor at Stanford University.

Born in Yonkers, New York, he earned his A.B. from Princeton University in 1968 and Ph.D. from Stanford in 1973, both in economics. He taught at Columbia University from 1973-1980 and the Woodrow Wilson School of Princeton from 1980-1984 before returning to Stanford. He has received several teaching prizes and always teaches Stanford's introductory economics course.

An expert on monetary policy, he developed the Taylor rule, which provides a guide to central banks on how to determine interest rates.

He has also been active in politics, serving as the Under Secretary of the Treasury for International Affairs during the first term of the Bush Administration. He was also a member of the President's Council of Economic Advisers during the Ford and George H. W. Bush administrations.

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