Posted on April 29, 2013 by iMFdirect
By Olivier Blanchard
(Versions in عربي, 中文, Français, Русский, and Español)
The IMF has just hosted a second conference devoted to rethinking macroeconomic policy in the wake of the crisis. After two days of fascinating presentations and discussions, I am certain of one thing: this is unlikely to be our last conference on the subject.
Rethinking and reforms are both taking place. But we still do not know the final destination, be it for the redefinition of monetary policy, or the contours of financial regulation, or the role of macroprudential tools. We have a general sense of direction, but we are largely navigating by sight.
Filed under: Advanced Economies, Asia, Debt Relief, Economic research, Europe, Finance, Financial Crisis, Financial regulation, Financial sector supervision, Fiscal policy, IMF, International Monetary Fund, Politics, Public debt | Tagged: conference, debt, Financial regulation, financial sector, iMFdirect, International Monetary Fund, Italy, Japan, macroeconomic policy, macroeconomics, macroprudential policies, monetary policy, Olivier Blanchard, Spain, United Kingdom | 7 Comments »
Posted on March 4, 2011 by iMFdirect
By Olivier Blanchard
Before the global economic crisis, mainstream macroeconomists had largely converged on a framework for the conduct of macroeconomic policy. The framework was elegant, and conceptually simple. Caricaturing just a bit, it went like this:
- The essential goal of monetary policy was low and stable inflation. The best way to achieve it was to follow an interest rate rule. If designed right, the rule was not only credible, but delivered stable inflation and ensured that output was as close as it could be to its potential. Continue reading
Filed under: Economic Crisis, Economic research, Financial Crisis, Fiscal policy, IMF, International Monetary Fund | Tagged: capital flows, central banks, conference, currency, David Romer, economic imbalances, fiscal policy, Great Moderation, interest rates, Joseph Stiglitz, liquidity, macroeconomics, Michael Spence, monetary policy, Olivier Blanchard, swaps | 32 Comments »