## Rethinking Macroeconomic Policy

_IMF Staff Position Notes, February 12, 2010_

## Source details

**Canonical URL:** [Rethinking Macroeconomic Policy](https://www.imf.org/en/publications/imf-staff-position-notes/issues/2016/12/31/rethinking-macroeconomic-policy-23513)

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## Bibliographic details
- Authors: Olivier J Blanchard, Giovanni Dell'Ariccia, Paolo Mauro
- Published: February 12, 2010
- Series: IMF Staff Position Notes
- DOI: https://doi.org/10.5089/9781455224982.004

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### Overview
- Authors: Olivier J Blanchard, Giovanni Dell'Ariccia, Paolo Mauro
- Publication date: February 12, 2010
- Summary: The paper reviews the main elements of the pre-crisis consensus, identifies where that framework was wrong and what tenets still hold, and takes a tentative first pass at the contours of a new macroeconomic policy framework.

### Main analytical focus
- Review of the pre-crisis macroeconomic policy consensus.
- Identification of failings in the pre-crisis framework exposed by the crisis.
- Assessment of which tenets of the pre-crisis framework remain valid.
- Tentative proposal of the contours of a new macroeconomic policy framework.

### Key findings and contributions
- The "great moderation" created a false sense of confidence among macroeconomists and policymakers about how to conduct macroeconomic policy.
- The crisis forces a reexamination of the pre-crisis consensus.
- The paper explicitly:
  - reviews the main elements of the pre-crisis consensus;
  - identifies where the pre-crisis assessment was wrong;
  - identifies tenets of the pre-crisis framework that still hold;
  - takes a tentative first pass at defining a new macroeconomic policy framework.

### Policy implications and recommendations (tentative)
- Reassess established macroeconomic policy rules and doctrines in light of crisis experience.
- Retain and reaffirm tenets of the pre-crisis framework that remain valid, while modifying or discarding those proven inadequate.
- Begin development of a revised macroeconomic policy framework reflecting lessons from the crisis (presented as a tentative first pass).

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## Content in this bundle

- **_spn1003**
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_Source: https://www.imf.org/en/publications/imf-staff-position-notes/issues/2016/12/31/rethinking-macroeconomic-policy-23513_