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From Bretton Woods, Calls for Global Monetary Stability

Central banks around the world need to return to simple monetary policies to boost financial stability, according to John Taylor, the Stanford University professor and former Treasury Department official.

“Fear of free-falling exchange rates would be calmed as reliable central-bank actions came to be expected,” Taylor told an audience in Bretton Woods, New Hampshire. “The large, destabilizing monetary-policy-induced capital flows, which were motivated by search for yield, would diminish.”