I entered into a heated US debate last week on whether the recovery has been surprisingly slow and, if so, whether the policies of Barack Obama’s administration bear responsibility for that outcome. In particular, I was responding to a post by John Taylor of Stanford University, a distinguished macroeconomist and adviser to Mitt Romney, who had argued that the recovery was exceptionally weak.

Prof Taylor has responded to my reply. In this response, he makes four points.

First, he argues that if we exclude the recoveries in 1973, 1981 and 1990 from the analysis, the gap between the average US recovery and the current recovery becomes even bigger. Read more

Part 1

What is the correct approach to fiscal and monetary policy when an economy is depressed and the central bank’s rate of interest is close to zero? Does the independence of the central bank make it more difficult to reach the right decisions? These are two enormously important questions raised by current circumstances in the US, the eurozone, Japan and the UK.

Broadly speaking, I can identify three macroeconomic viewpoints on these questions: Read more