Much of the financial crisis was caused by excessively loose monetary policy, evidenced by interest rates in 2003-2005 being much lower than would have been expected based on the monetary policy that worked well during the long expansions of the 1980s and 1990s, as measured by the Taylor rule.
causalpending
Speaker
John TaylorEvidence Quote
“the evidence I focus on is that interest rates were much lower especially 2003 4 & 5 then would have been expected based on the kind of monetary policy that was used during much of the 80s and 90s when we had these long expansions in very short recessions”
Created: 6/15/2026, 9:20:12 AM
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