Policy Stability and Economic Growth – Lessons from the Great Recession : Lessons from the Great Recession

The authors -- Foreword -- Acknowledgement -- Summary -- Tables and figures -- 1 Policy stability and economic growth: lessons from the Great Recession -- Introduction -- The Great Recession compared with earlier recessions -- The principles of good policy -- Monetary policy: to the Taylor rule and back -- Very unruly policy -- A return to rules-based policy -- References -- 2 Questions and discussion -- 3 Was failure to follow the Taylor rule enough to cause the crisis? -- A commentary on John Taylor's lecture -- Patrick Minford -- Evaluating John Taylor's particular thesis about the financial crisis -- Did the Taylor rule with inflation targeting fail during and before the crash? -- John Taylor's plea for a return to predictable rules of policy -- Conclusions -- References -- 4 The need for discretion and rules -- A commentary on John Taylor's lecture -- Andrew G. Haldane and Amar Radia -- Rules and discretion revisited -- Monetary policy rules in practice -- Concluding remarks -- References -- 5 A rejoinder -- John B. Taylor -- Reference -- About the IEA -- Figure 1 Great Recession and not-so-great recovery (US) -- Figure 2 Great Recession and not-so-great recovery (UK) -- Figure 3 US recession and recovery in early 1980s -- Figure 4 UK recession and recovery in early 1980s -- Figure 5 Growth rate in first eight quarters of a recovery from previous recessions with a financial crisis (identified by year recession began) -- Figure 6 Inflation from 1953 to 2013 -- Figure 7 1965-80: monetary policy not well described by good rules-based policy -- Figure 8 Loose-fitting monetary policy -- Figure 9 Housing investment versus deviations from the Taylor rule in the euro zone countries, 2001-6 -- Figure 10 Did the fiscal stimulus stimulate consumption? -- Figure 11 Debt to GDP ratio in the US