Rethinking Macroeconomic Policy
Revista de Economía Institucional, Vol. 12, No. 22, 2010
22 Pages Posted: 26 Jul 2010
Date Written: June 1, 2010
The great moderation lulled macro-economists and policymakers alike in the belief that we knew how to conduct macroeconomic policy. The crisis clearly forces to question that assessment. This paper reviews the main elements of the pre-crisis consensus, identify where we were wrong and what tenets of the pre-crisis framework still hold, and take a tentative first pass at the contours of a new macroeconomic policy framework.
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Keywords: macroeconomic policy, macroprudential regulation, inflation targets, automatic stabilizers
JEL Classification: E44, E52, E58, G38, H50
Suggested Citation: Suggested Citation