You do not want an institution that depends on getting the right person into position; because the political incentives facing the Fed chair will not change, the system remains prone to catastrophic mistakes (like the Great Depression and the recent crisis), so the remedy is to build sound philosophy — such as inflation targeting or rule-based interest-rate guidelines — into the institutions themselves rather than relying on individual leadership.

normativepending

Speaker

Russ Roberts

Evidence Quote

I'm pretty confident that if John Taylor were the next head of the Fed we'd have some good economic times you really don't want to have an institution that depends on getting the right person into position

Source

John Taylor on the Financial Crisis 07/20/2009EconTalk
Created: 6/15/2026, 9:20:12 AM

My Notes

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