Reinhart, Sheets on John Taylor as Possible Fed Chair

The transcript discusses John Taylor's economic approach, focusing on the Taylor Rule and its application. It highlights Taylor's method of using incoming data to form economic outlooks and set policies. The discussion includes a comparison between the Taylor Rule and discretionary approaches, referencing figures like Greenspan and Bernanke. The equilibrium real interest rate is examined, with historical context provided by the Greenspan Fed. The transcript concludes with an analysis of current economic conditions, suggesting that the neutral real rate may be lower than previously thought, impacting future policy decisions.

What are the implications of a lower neutral real rate for the US economy?

What do analysts suggest about the current neutral real rate compared to 1%?