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Rethinking Macroeconomic Policy
Author(s) -
BLANCHARD OLIVIER,
DELL’ARICCIA GIOVANNI,
MAURO PAOLO
Publication year - 2010
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/j.1538-4616.2010.00334.x
Subject(s) - great moderation , economics , moderation , monetary policy , keynesian economics , computer science , machine learning
The great moderation lulled macroeconomists and policymakers alike in the belief that we knew how to conduct macroeconomic policy. The crisis clearly forces us to question that assessment. In this paper, we review the main elements of the precrisis consensus, identify where we were wrong and what tenets of the precrisis framework still hold, and take a tentative first pass at the contours of a new macroeconomic policy framework.