Shady Side Academy alumnus and Stanford professor and economist John Taylor '64 has been awarded the 2012 Hayek Prize by the Manhattan Institute for his recent book First Principles: Five Keys to Restoring America's Prosperity. One of the most significant book prizes in the country, the prize honors the book that best reflects economist and Nobel laureate Friedrich Hayek's vision of economic and individual liberty. Taylor will receive the award and deliver the Hayek Lecture on May 31 in New York City.
In his new book, Taylor offers solutions to the current economic crisis that involve returning to America’s founding principles. Taylor is creator of the Taylor Rule, a monetary policy rule that stipulates how much the central bank should change the nominal interest rate in response to changes in inflation, output, or other economic conditions. From 2001 to 2005, he served as undersecretary of the Treasury for international affairs where he was responsible for currency markets, international development, oversight of the International Monetary Fund and the World Bank, and coordinating policy with the G-7 and G-20. Taylor also served as a member of President George H. W. Bush's Council of Economic Advisers and as senior economist on President Ford's and President Carter’s Councils of Economic Advisers.