Rethinking Policy at the IMF
IMF Blog, June 6, 2016
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Bibliographic details
- Authors: iMFdirect
- Published: June 6, 2016
Context and overview
- Publication: iMFdirect
- Date: June 6, 2016
- Format: Interview with IMF Chief Economist Maury Obstfeld
- Timing: Eight months into the job as IMF Chief Economist, Maury Obstfeld reflects on the IMF’s role in rethinking macroeconomic and financial policies following the global financial crisis.
Key themes discussed
- Global response to the crisis:
- The global financial crisis led to a broad rethink of macroeconomic and financial policies in the global academic and policy community.
- Institutional self-evaluation:
- Given the impacts of IMF decisions on member countries and the global economic system, it is especially important for the institution to constantly re-evaluate its thinking in light of new evidence.
- Fiscal policy:
- Quote: “nobody wants needless austerity,” highlighting concern about unnecessarily contractionary fiscal measures.
- Capital flows and trade:
- The Fund’s work on capital flows and trade is identified as a focus area in the evolving policy discussion.
- Core approach continuity:
- Even as the Fund’s thinking evolves, the process has not “fundamentally changed the core of our approach, which is based on open and competitive markets, robust macro policy frameworks, financial stability, and strong institutions."
Takeaways and implications
- The IMF is actively reassessing policy advice and frameworks in response to post-crisis evidence.
- Emphasis on avoiding needless austerity in fiscal policy deliberations.
- Continued attention to capital flows and trade as central elements of policy work.
- Commitment to foundational principles: open and competitive markets; robust macro policy frameworks; financial stability; strong institutions.
Source: Rethinking Policy at the IMF — iMFdirect, June 6, 2016.