Overcoming the Obstacles to International Macro Policy Coordination Is Hard

by Olivier Blanchard, Jonathan D Ostry and Atish R Ghosh, Voxeu.org The world has just been through a period of unprecedented macro policy activism. More is set to come as central banks exit unconventional policies, governments fix their fiscal positions, and financial regulations are reformed. These national policies have undeniable international spillovers. This column argues …

Monetary Policy Will Never Be the Same

by Oliver Blanchard, Voxeu.org The global crisis changed the face of monetary policy. This column, written by the IMF’s chief economist, reviews the main changes. It draws on contributions to a recent IMF conference on the topic. Two weeks ago, the IMF organized a major research conference, in honour of Stanley Fischer, on lessons from …

ZIRP and the Permanent Slump

Written by Steven Hansen This past week Nobel Laureate Paul Krugman mused: ….. if our economy has a persistent tendency toward depression, we’re going to be living under the looking-glass rules of depression economics — in which virtue is vice and prudence is folly, in which attempts to save more (including attempts to reduce budget …

The Great Debate©: Is Fed Policy Too Tight?

The following is a proposition by Scott Sumner (professor of economics at Bentley University) that the QE programs by the U.S. Federal Reserve and other central bank actions have actually been “highly contractionary” and a rebuttal by L. Randall Wray (professor of economics at the University of Missouri Kansas City).

There’s A Problem with the Transmission

by Frances Coppola, CoppolaComment.Blogspot.Co.UK In my last post, I pointed out that QE does not work when the transmission mechanism for monetary policy is impaired because of a damaged and risk-averse financial sector. This caused some confusion among those who think that throwing money at banks automatically makes them lend, so I attempted to explain …