Traditional money measures like M2 became unreliable because technological and regulatory changes let people make payments without traditional money forms; this is why central bankers and policy rules like the Taylor rule focused on interest rates to stand in for hard-to-measure money growth.

causalpending

Speaker

John Taylor

Evidence Quote

because of all the technological changes the regulatory changes the ability for people to make payments without the traditional forms of money money became less reliable the traditional measures became less reliable... that's one of the reasons why central bankers have focused on interest rates and one of the reasons why policy rules like the Taylor rule were designed

Source

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

My Notes

Loading notes...