John B. Taylor: “The government is involved. It causes all sorts of issues, political. The government is not good at managing private…”

Central-bank independence is very important, but it doesn't seem to have been enough to prevent these swings towards more interventionist discretionary policy compared to a rules-based policy.

This discussion about cost-benefit analysis is amazing to me. It is sort of the basic thing you teach students about government policy.

The Congress has laid out a strategy to reduce spending gradually over time. I think moving back off of that would be a mistake.

I think it would be a mistake based on the knowledge we have now about how central banks work, and how economies work, to change the dual mandate even when we are in recovery, I think it is the responsible and right thing to do.