Україна, 04655, м. Київ, вул. Г. Сковороди, 2 корпус 6, кім. 410, тел.(044)425-60-42, 425-77-37 (факс)

John Taylor Lecture

 On 18 of May, Kyiv-Mohyla Academy held a guest lecture of John Taylor - Professor at Stanford University, author of well-known "Taylor rule", a former senior economist and member of the Council of Economic Advisers to the USA President, and Deputy of the USA Treasury. The lecture was dedicated to the topic "The Importance of Independent Rule-Based Central Banks".

 

The speaker stressed that the central bank should not only be independent, but also use rule-based policy for effective implementation of monetary policy. One example of such rules is the "Taylor rule" that most central banks use as a guide when deciding on key interest rate.

The majority of the Central banks conducted rule-based policy in 80-90 years, but began to deviate from it in 2003-2005. The fact that monetary policy has not been based on rules since that is the reason why the United States faced the Great Recession, and why it was so prolonged according to the lecturer.

Economist is convinced that for the compliance with rule-based policy, the central bank should not only set goals, but also to publish a strategy for using this policy instrument to achieve the target. As an example of good strategy of monetary policy formulation John Taylor mentioned the National Bank of Ukraine.

Presentation of John Taylor lecture is available here: https://goo.gl/A7jCa6.

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