Renowned economist John Taylor to speak at alma mater, Shady Side Academy, graduation

When renowned Stanford economist John Taylor takes the stage at Shady Side Academy’s commencement June 2, he’ll urge students to continue to pursue education and maintain a mix of work and pleasure throughout their lives.

“Don’t be discouraged by the occasional let-down after a change,” Taylor plans to tell the graduates. “Let each change be a learning experience.”

A 1964 graduate of the Fox Chapel school, Taylor will speak to his alma mater during the 9 a.m. ceremonies at Michael J. Farrell Stadium, nestled on the 130-acre senior school campus off Fox Chapel Road. According to school spokeswoman Jen Roupe, 110 students are set to graduate.

Considered a titan in the field of macroeconomics, Taylor was designated by Thomson Reuters as a “Citation Laureate,” a likely future winner of the Nobel Prize in Economics. He also has been named to the “50 Most Influential” list by Bloomberg Markets magazine.

Great Bloomberg Interview: Now How to Get Back https://t.co/bNPXSnEMvB via @EconomicsOne

— John B. Taylor (@EconomicsOne) February 15, 2023

Taylor is the Mary and Robert Raymond Professor of Economics at Stanford University, the George P. Shultz Senior Fellow in Economics at the Hoover Institution and director of the Stanford Introductory Economics Center.

His development of an interest rate equation — now known as the Taylor Rule — is widely accepted as one of the most effective tools central banks can use to support monetary decision-making.

When he attended Shady Side Academy for high school, Taylor was a five-day boarder and has said he received an “extraordinary” foundation in writing and science. After graduating, Taylor earned his bachelor’s degree from Princeton and a Ph.D. in economics from Stanford.

Through the years, Taylor has been influential in federal economic policy, serving both Democratic and Republican administrations on the President’s Council of Economic Advisers and as undersecretary of the Treasury for International Affairs, a role that included leadership of currency markets, trade in financial services, foreign investment, international debt and development and oversight of both the International Monetary Fund and World Bank.

He received the Alexander Hamilton Award for his sustained leadership at the U.S. Treasury and the Treasury Distinguished Service Award for designing and implementing transformative currency reforms in Iraq.

Prior to Stanford, Taylor was a professor of economics at Princeton and Columbia universities.

He remains a member of the SSA Board of Visitors and regularly hosts alumni events at his home in Palo Alto.

The Herald took the opportunity to ask the economist for a few tips:

What is the top advice you will share with the graduates?

“Study hard and have fun,” Taylor said. “Get involved with different activities and try ones that you have not done before: debate, dance, computers, stage, sports or start your own. Life is a mixture.”

What advice will you give parents trying to save up for their children’s college education?

“Start saving for college when your children are born, and save a bit each year,” Taylor said. “A good education is most important.

“Economists call it human capital. There are many opportunities and chances to try new things and improve. College is changing, and there are so many new opportunities.”

What grade would you give the U.S. economy?

“The U.S. economy is not doing as well now as it could be doing. Growth is low and inflation is high,” Taylor said. “We could get an A+ if we get our act together.

“I have argued that there are five economic things to work toward: a predictable policy framework, rule of law, strong incentives, reliance on markets and a limited role for government. But we need to be careful to do all of this. Otherwise, we will fall behind.”

What is the most important economic issue facing the country now and how do you believe it can be solved?

“On economic issues, we need better monetary policy, better fiscal policy, better regulatory policy and better international policy,” Taylor said. “Addressing all of these will bring higher economic growth and a more equal income distribution.

“Higher economic growth will help all in the country. At the national level, it is so important to be sure that economics (the Treasury Department) is a key part of our political efforts (the State Department) and military efforts (the Defense Department).”