Rethinking Macroeconomic Policy (Blanchard, Dell’ Ariccia and Mauro)

The IMF on February 12 published a papaer, “Rethinking Macroeconomic Policy”, by Olivier Blanchard, Giovanni Dell’ Ariccia and Paolo Mauro, part of a series policy papers prepared by staff of the 186 member international institution that reassesses the macroeconomic and financial policy framework in the wake of the devasting crisis. In this paper, they review the main elements of the pre-crisis consensus, they identify where they 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. see: htt://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf