## Resilience Amid Structural Transformations: Are Macro Policy Frameworks Fit for Purpose?

_Departmental Papers, August 27, 2026_

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**Canonical URL:** [Resilience Amid Structural Transformations: Are Macro Policy Frameworks Fit for Purpose?](https://www.imf.org/en/publications/departmental-papers-policy-papers/issues/2026/08/26/resilience-amid-structural-transformations-are-macro-policy-frameworks-fit-for-purpose-576701)

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## Bibliographic details
- Authors: Diala Al Masri, Ivailo Arsov, Yongquan Cao, Sonali Das, Julia Faltermeier, Anna Ilyina, Benjamin R Kett, Jesper L Linde, Mico Mrkaic, Jeta Menkulasi, Anh D. M. Nguyen, Julia Otten, Jerome Vandenbussche
- Published: August 27, 2026
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9798229042925.087

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### Summary and central conclusion
- The post-GFC era has marked a transition from the relative stability of the “Great Moderation” to a more volatile “Great Turbulence,” characterized by structural transformations, frequent shocks, heightened uncertainty, and constrained policy space.
- The paper examines whether existing macroeconomic policy frameworks remain fit for purpose in the face of four major global trends: demographic change, climate change, geoeconomic fragmentation, and artificial intelligence.
- Conclusion: credible, resilient, and well-coordinated policy frameworks will be essential to preserving domestic and external stability in an increasingly shock-prone world.

### Four major global trends analyzed
- Demographic change
- Climate change
- Geoeconomic fragmentation
- Artificial intelligence

### Key themes and policy-relevant findings
- Structural transformations and frequent shocks increase volatility and constrain policy space relative to the “Great Moderation” period.
- Existing macroeconomic policy frameworks face challenges in adapting to:
  - heightened uncertainty,
  - more frequent supply shocks,
  - evolving inflation-output tradeoffs,
  - changes in fiscal space needs, and
  - implications of technological change for productivity and labor markets.
- Effective responses require frameworks that are:
  - credible,
  - resilient to shocks,
  - well-coordinated across policy areas and borders.

### Subject classifications and keywords (as presented)
- Subject: Artificial intelligence (economics), Economic growth, Economic theory, Fiscal policy, Fiscal space, Inflation, Prices, Structural transformation, Supply shocks, Technology
- Keywords: artificial intelligence, climate risks, demographic transition, economic policy, fiscal space, geoeconomic fragmentation, inflation outcome, inflation-output tradeoff, macroeconomic stability, monetary policy framework, monetary policy implication, monetary policy response, policy coordination, policy frameworks, structural change, supply shocks

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_Source: https://www.imf.org/en/publications/departmental-papers-policy-papers/issues/2026/08/26/resilience-amid-structural-transformations-are-macro-policy-frameworks-fit-for-purpose-576701_