The proper monetary-policy lesson is essentially technical, not political: the very low rates were an effort to over-fine-tune ('the perfect becoming the enemy of the good') — trying to do even better than the successful 20-year record — and the lesson is to return to the basic fundamentals that worked rather than overdo fine-tuning.

normativepending

Speaker

John Taylor

Evidence Quote

you could think about the very low rates that I complained about before as an effort to do if you like do too much fine-tuning anyway it's kind of like the perfect becomes the NAB... so come back to sort of the basic fundamentals of what worked and let that guide policy

Source

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

My Notes

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