Rethinking Macroeconomic Policy |
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| Authors: | OLIVIER BLANCHARD GIOVANNI DELL’ARICCIA PAOLO MAURO |
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| Institution: | 1. Olivier Blanchard is the IMF's Economic Counsellor and Director of the Research Department (E‐mail: oblanchard@imf.org).;2. Giovanni Dell’Ariccia is an Advisor in the Research Department, IMF (E‐mail: gdellariccia@imf.org).;3. Paolo Mauro is a Division Chief in the Fiscal Affairs Department, IMF (E‐mail: pmauro@imf.org). |
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| 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 precrisis consensus, identify where we were wrong and what tenets of the precrisis framework still hold, and take a tentative first pass at the contours of a new macroeconomic policy framework. |
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| Keywords: | E44 E52 E58 G38 H50 macroeconomic policy macroprudential regulation inflation targets automatic stabilizers |
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