The crisis has forced economists and policymakers to go back to their drawing boards. Where did they go wrong, and what implications does the crisis have for both macroeconomic theory and macroeconomic policy making?
This was the topic of this year’s IMF Jacques Polak Research Conference. The conference was the first since the passing of Jacques Polak, after whom the conference has been named, and to which he came every year until last year. Present at the Fund’s creation and a long time Fund economist, Jacques had been described by the Managing Director as “a leader of critical thought during the post-war evolution of the global economy.” As such, this conference, and its focus on the post-crisis evolution of the global economy, was fitting a fitting tribute to Jacques. We shall miss him.
The twelve papers presented at the conference provided rich fodder for discussion. For two days, researchers and policymakers explored the contours of policy making in the post-crisis world. I want to share with you some of the major themes: (more…)
Filed under: Advanced Economies, Economic Crisis, Financial Crisis, Financial regulation, IMF, International Monetary Fund | Tagged: capital flows, financial integration, financial markets, Financial regulation, financial sector, financial stability, fiscal consolidation, fiscal policy, fiscal space, Fiscal Stimulus, fiscal sustainability, hot money, IMF Jacques Polak Research Conference, Jacques Polak, macroprudential regulation, monetary policy, monetary policy rule, risk aversion | 4 Comments »