Strengthening the Global Economy: A Report on the Bush Administration Agenda
John
B. Taylor was appointed Under Secretary for International Affairs, U.S.
Department of the Treasury, by President Bush in 2001. He is a globally
recognized expert on international monetary and financial issues, and
he serves as the principal adviser to the Secretary of the Treasury on
those issues. His previous government experience includes serving on the
Council of Economic Advisers. He was a professor at Stanford University,
where he received numerous awards for excellence in teaching. He is the
creator of the Taylor rule for monetary policy. He received a BA in economics
summa cum laude from Princeton University and a Ph.D. in economics from
Stanford University.
Presented at the NABE Annual Meeting, September 30, 2002.
The Bush Administration’s international economic agenda emphasizes increased economic growth and improved economic stability throughout the world. However, effective international policy begins at home, and the macroeconomic policies are in place for sustained, non-inflationary U.S. growth. On the international side, the Administration is focused on raising productivity growth in the industrialized countries, emerging markets, and the developing world. For developing economies, much of the emphasis is on increasing assistance to those developing countries that pursue constructive growth policies. Much of this increase is through multilateral agencies as well as direct bilateral assistance. For the emerging market countries policy focuses on improving conditions for private investment by better preventing financial crises, reducing contagion when crises do occur, reducing reliance on official finance packages, and increasing predictability in the sovereign debt restructuring process. Free trade is another cornerstone the Administration’s international economic policy; and now that the President has trade promotion authority, free trade negotiations will move ahead quickly on several bilateral and multilateral front. Removing terrorist access to finances and rebuilding Afghanistan have been unanticipated additions to foreign economic policy, and the Administration is moving forward in these areas, as well.