Rethinking Macro Policy: Progress or Confusion?

Olivier Blanchard:

Rethinking Macro Policy: Progress or Confusion?: On April 15 and 16, 2015, the IMF hosted the third conference on “Rethinking Macroeconomic Policy.” I had initially chosen as the title and subtitle “Rethinking Macroeconomic Policy III. Down in the Trenches.” I thought of the first conference in 2011 as having identified the main failings of previous policies, the second conference in 2013 as having identified general directions, and this conference as a progress report. My subtitle was rejected by one of the co-organizers, Larry Summers. He argued that I was far too optimistic, that we were nowhere close to knowing where were going. Arguing with Larry is tough, so I chose an agnostic title and shifted to “Rethinking Macro Policy III: Progress or Confusion?” Where do I think we are today? I think both Larry and I are right. I do not say this for diplomatic reasons. We are indeed proceeding in the trenches. But where the trenches will eventually lead remains unclear. This is the theme I shall develop in these concluding remarks, focusing on macroprudential tools, monetary policy, and fiscal policy. ...

Brad DeLong responds: On this one--views of fiscal policy--put me down not for progress but for "confusion for $2000", Alex, for on this one I think the very sharp Olivier Blanchard has got it wrong. ...