Rethinking Macroeconomic Policy

Olivier Blanchard, Giovanni Dell'ariccia and Paolo Mauro

No 2010/003, IMF Staff Position Notes from International Monetary Fund

Abstract: The great moderation lulled macroeconomists and policymakers alike in the belief that we knew how to conduct macroeconomic policy. The crisis clearly forces us to question that assessment. In this paper, we review the main elements of the pre-crisis consensus, we identify where we were wrong and what tenets of the pre-crisis framework still hold, and take a tentative first pass at the contours of a new macroeconomic policy framework.

Keywords: SPN; monetary policy; central bank; interest rate; inflation expectation; core inflation; interest rate rule; monetary policy action; inflation neutral; inflation shock; inflation stability; economic system; inflation rate; Inflation; Asset prices; Central bank policy rate; Inflation targeting; Eastern Europe (search for similar items in EconPapers)
Pages: 19
Date: 2010-02-12
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Citations: View citations in EconPapers (293)

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Journal Article: Rethinking Macroeconomic Policy (2010)
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