– March 17, 2011

“Summarizing an IMF conference, Olivier Blanchard lists nine points. I will make extended comments below the fold. Here is a crucial sentence:

‘Monetary policy has to go beyond inflation stability, adding output and financial stability to the list of targets, and adding macro-prudential measures to the list of instruments.’

Thus does over thirty years of academic thinking on monetary policy get thrown under the bus.” Read more

“Blanchard on the Future of Macroeconomic Policy” 
Arnold Kling 
EconLog, March 14, 2011. 

Image by vichie81 / FreeDigitalPhotos.net.


Tom Duncan

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