Olivier Blanchard, the IMF and the Future of Macroeconomic Policies (2011)
Saturday, March 26, 2011
Silicone Giant Cupcake Sticking
Dr. Olivier Blanchard, French, and for many years professor of economics at the Massachusetts Institute of Technology (USA),
now as economic advisor and Director of Research Department of the International Monetary Fund (IMF), sets nine tentative conclusions about the future of post-crisis macroeconomic policies.
These approaches emerge as the same shows, lectures on macroeconomics and growth policies, with the participation of economists like Paul Romer, Michael Spence, Joseph Stiglitz, George Akerlof, Dani Rodrik, Maurice Obsfeld among other highlights.
Party and video material found on the IMF website as follows:
http://www.imf.org/external/np/seminars/eng/2011/res/index.htm
http://www.imf.org/external/np/seminars/eng/2011/res/index.htm
The new talking points on Dr. Blanchard are:
1 .- A new post-crisis world, unlike, for which we have to formulate economic policies.
2 .- The secular debate between market and state, the pendulum has swung toward the state.
3 .- The crisis has shown that there are many distortions concerning Macroeconomics.
4 .- Macroeconomic policy has many goals and many instruments.
5 .- It has many policy instruments, but do not really know how to use them.
6 .- The new policy instruments are potentially useful but pose new challenges for economic policy.
7 .- exciting future for researchers in economic policies.
8 .- The difficulties of using economic policy instruments and the possibility of making bad choices.
9 .- should moderate the expectations.
The Dr.Blanchard suggests the introduction of macro-prudential policies, but let's see what are these. The policies adopted by financial institutions, from the Basel accords, were of a micro, at systems that are private institutions and international agreements under an entity that seeks to match in the management of financial institutions through mechanisms market and financial instruments. After the crisis, these are not sufficient and suggests the participation of States, which ultimately are the ones through different mechanisms introduced macroeconomic corrections and reordered the financial chaos, against any assumption underlying economic power, this is called macro-prudential policies. Here
further explanation by Dr. John Lipsky:
http://blog-dialogoafondo.org/?p=47
http://blog-dialogoafondo.org/?p=47
But the use of such policies, it includes the microeconomic aspects world macroeconomic policy, such is the case of Agency Theory and the Theory of Regulation, to assess from a macro approach, the incentives of economic agents in financial markets, even suggests the addition of new theories behavioral of the heterodox (pragmatism, new approaches to the behavior of economic agents, etc.) many times in the microeconomic and now the need to form part of the new macroeconomic policy framework. And this is directed towards what is known as fiscal policy, whose role is central to the current crisis and that it must rethink in a more dynamic partnership with the makers of monetary policy.
It seems the crisis has exposed to macroeconomic theory, although this is still young and should be considered under other models, such as Chinese adaptive growth, meanwhile is now in the field economists researchers evaluate and incorporate new instruments.
http://blog-dialogoafondo.org/?p=649
http://blog-dialogoafondo.org/?p=649
http://www.qfinance.com/contentFiles/QF01/gezqixyt/17/0/warwick-commission-highlights-the local-and-political-dimensions-of-global-financial-reform.pdf
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