Rethinking Economic Principles: Join the Debate

IMF Blog, May 2, 2011

Source details

Goal: A wholesale reexamination of macroeconomic principles in the wake of the global financial crisis.
Timing: Conference held at the IMF in early March (2011).
Framing quote: “The global financial crisis caused immense hardship and suffering all over the world. To prevent a repeat, we need to rethink… what we know about economic theory …. We need to rethink, following this, the policies … coming from the analytical work. And then we will need also to rethink multilateralism.” — IMF Managing Director Dominique Strauss-Kahn (April 16, 2011).

Olivier Blanchard
- Role: Kicked off the conference by posing questions about rewriting the macroeconomists’ playbook.
- Output: Later offered nine tentative conclusions—drawing on the conference discussions—intended to stimulate further debate.
Co-hosts and commentators:
- David Romer, Michael Spence, and Joseph Stiglitz: Described the conference as an important starting point for a balanced debate on the evolution of economic policies.
- Robert Solow: Presented new policy ideas for a new world.
External commentators and public debate:
- Outside responses and discussion from Anders Aslund, Paul Krugman, Mark Thoma, David Wessel, and Matthew Yglesias.
Educational value:
- Students and academics welcomed the conference videos as an excellent ongoing resource.

The page offers “a list of recommended reads” to help readers participate in the conversation (specific titles not listed on this page).
The conference and participant posts are positioned as the beginning of an ongoing exploration and debate about macroeconomic theory and policy.

Invitation: “We encourage you to join the debate by adding your comments here.”
Purpose: To involve a broader audience in rethinking economic theory, policy prescriptions, and multilateral approaches after the crisis.

Blog identity: IMFBlog is a forum for the views of the International Monetary Fund (IMF) staff and officials on pressing economic and policy issues of the day.
IMF description: The IMF, based in Washington D.C., is an organization of 191 countries, working to foster global monetary cooperation and financial stability around the world.
Disclaimer: “The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board.”

Source: Rethinking Economic Principles: Join the Debate (IMF iMFdirect), May 2, 2011.