For certain investors,it's quite positive,according to John Taylor,Professor of Economics at Stanford University and Senior Fellow in Economics at the Hoover Institution.The long term thing is really fundamentals in the economy,and I don't see them as being positive.The employment to population ratio is down compared to the beginning of the recovery.It's a bad labor market with people dropping out.
Our fiscal policy is way out of line.You've got to exit it in a gradual way.You can't shock the market.There will be pain.There has to be an exit strategy that's understood,that's explained in advance.
Europe is quite a ways from resolving the debt crisis.They're kicking it down the road.
The Federal Reserve's focus on unemployment has resulted in higher unemployment.I'd like a more predictable,rule-based Fed policy,Dr.Taylor said.
John B. Taylor has a BA in economics from Princeton and a PhD in economics from Stanford.He is the author of "Getting Off Track,"a book on the financial crisis,as well as "First Principles:Five Keys to Restoring America's Prosperity."He served as Undersecretary of the Treasury for International Affairs from 2001-2005 and was on the President's Council of Economic Advisors several times.
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