Rethinking Macro Policy II: Getting Granular
Staff Discussion Notes, April 15, 2013
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- Rethinking Macro Policy II: Getting Granular
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Bibliographic details
- Authors: Olivier J Blanchard, Giovanni Dell'Ariccia, Paolo Mauro
- Published: April 15, 2013
- Series: Staff Discussion Notes
- DOI: https://doi.org/10.5089/9781484363478.006
Publication metadata
- Authors: Olivier J Blanchard, Giovanni Dell'Ariccia, Paolo Mauro
- Publication date: April 15, 2013
- Series: Staff Discussion Notes No. 2013/003
- Issue: 003
- Volume: 2013
- Pages: 26
- DOI: https://doi.org/10.5089/9781484363478.006
- Stock No: SDNEA2013003
- ISBN: 9781484363478
- ISSN: 2617-6750
- Format: Staff Discussion Note (SDN)
Rationale and scope
- Explores how economic thinking about macroeconomic management has evolved since the crisis began.
- Follows up on the earlier “Rethinking” paper, refining the analysis in light of events of the past two years.
- Notes the relatively fluid state of the debate (for example, recent challenges to central bank independence).
- Highlights that while many tenets of the pre-crisis consensus have been challenged, others (such as the desirability of central bank independence) remain valid.
Major themes and substantive coverage
- Monetary policy
- Discusses developments in monetary policy, including unconventional measures.
- Public debt
- Discusses the challenges associated with increased public debt.
- Macroprudential policy
- Discusses the policy potential, risks, and institutional challenges associated with new macroprudential measures.
Subjects and keywords (as listed)
- Subjects: Banking, Financial sector policy and analysis, Financial sector stability, Fiscal consolidation, Fiscal policy, Inflation, Macroprudential policy instruments, Prices
- Keywords: aggregate demand, debt ratio, Eastern Europe, Europe, exchange rate, Financial sector stability, Financial stability, Fiscal consolidation, Fiscal multipliers, foreign exchange, Global, Inflation, inflation targeting, Inflation targets, liquidity trap, Macroprudential policy, Macroprudential policy instruments, Monetary policy, political economy, quantitative easing, real interest rate, SDN, sovereign bond, Zero lower bound
Summary of contribution
- Contributes to the ongoing debate on several aspects of macroeconomic policy by refining prior analysis in light of recent events.
- Emphasizes the coexistence of challenged pre-crisis tenets and enduring principles (explicitly noting central bank independence as an example of a principle that remains valid).
- Reviews trade-offs and institutional issues surrounding unconventional monetary tools, elevated public debt levels, and the introduction and management of macroprudential measures.
Staff Discussion Note: "Rethinking Macro Policy II: Getting Granular", Olivier J Blanchard; Giovanni Dell'Ariccia; Paolo Mauro; April 15, 2013; Staff Discussion Notes 2013, 003.
Content in this bundle
- _sdn1303 - Executive Summary