Progress and Confusion: The State of Macroeconomic Policy
Olivier Blanchard, Raghuram G. Rajan, Kenneth S. Rogoff, and Lawrence H. Summers
Abstract
In April of 2015, the International Monetary Fund gathered leading academic economists and policymakers, to discuss the shape of future macroeconomic policy. This book presents their combined insights. The chapters of the book address the policy debate in a number of areas: (i) whether the global economy has entered a “new normal” of low growth, negative real interest rates, and deflationary pressures; (ii) whether new financial regulations have helped stem systemic risk; (iii) the effectiveness of macro prudential tools; (iv) the future of monetary policy and whether it will revert to pre-cri ... More
In April of 2015, the International Monetary Fund gathered leading academic economists and policymakers, to discuss the shape of future macroeconomic policy. This book presents their combined insights. The chapters of the book address the policy debate in a number of areas: (i) whether the global economy has entered a “new normal” of low growth, negative real interest rates, and deflationary pressures; (ii) whether new financial regulations have helped stem systemic risk; (iii) the effectiveness of macro prudential tools; (iv) the future of monetary policy and whether it will revert to pre-crisis frameworks; (v) the future of fiscal policy and the balance between macro stabilization and debt sustainability; (vi) the volatility of international capital flows and the scope for exchange rate management and capital controls; and (vii) the international monetary system and the role of international policy coordination. In the final chapter, volume editor Olivier Blanchard asks whether there is progress or confusion regarding the future of macroeconomic policy. The answer is both. Many lessons have been learned; however, there is no clear agreement on several key issues.
Keywords:
macroeconomic policy,
rethinking,
new normal,
financial regulation,
macroprudential policy,
monetary policy,
fiscal policy,
capital flows,
international monetary system
Bibliographic Information
Print publication date: 2016 |
Print ISBN-13: 9780262034623 |
Published to MIT Press Scholarship Online: January 2017 |
DOI:10.7551/mitpress/9780262034623.001.0001 |
Authors
Affiliations are at time of print publication.
Olivier Blanchard, editor
Raghuram G. Rajan, editor
Kenneth S. Rogoff, editor
Lawrence H. Summers, editor
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