http://www.VoxEU.org Recent Olivier Blanchard articles on VoxEU.org en http://www.VoxEU.org/index.php?q=node/9372 Olivier Blanchard, Giovanni Dell'Ariccia, Paolo Mauro, 31 May 2013

The Global Crisis has shaken the consensus on how to run macroeconomic policy. Three years ago, the authors discussed this issue on VoxEU.org. This column takes a more granular look at new efforts to rethink macroeconomic policy. It takes stock of early results and provides a more detailed agenda for the key issues that should keep policymakers and academic macroeconomists busy in the next few years.

Full Article: Rethinking macroeconomic policy: Getting granular]]> Fri, 31 May 2013 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/9372 http://www.VoxEU.org/index.php?q=node/9308 Olivier Blanchard, 9 May 2013

Macroeconomics was challenged by the Global Crisis. In this column, one of the world’s leading macroeconomists provides his take on the highlights of the IMF’s recent conference. He concludes by noting that the conference set a clear research agenda for the future.

Full Article: Rethinking macroeconomic policy]]> Thu, 09 May 2013 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/9308 http://www.VoxEU.org/index.php?q=node/9286 Olivier Blanchard, Daniel Leigh, 3 May 2013

The debate about fiscal consolidation reduces too often to shouting matches about the value of fiscal multipliers, or about the existence of a critical debt-to-GDP ratio. This does not do justice to what is a complex choice, depending on many factors. Our purpose in this article is to review the relevant factors at play and allow for a richer discussion.

Full Article: Fiscal consolidation: At what speed?]]> Fri, 03 May 2013 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/9286 http://www.VoxEU.org/index.php?q=node/8995 Olivier Blanchard, 13 February 2013

The new year has provided cheer for macroeconomic optimists. This column by Olivier Blanchard, one of the world’s leading economists, argues that important progress has been made in putting the crisis behind us, but that recovery continues to be hampered by the need for fiscal consolidation and a weak financial system.

Full Article: The world economy: Cliffs avoided, mountains ahead]]> Wed, 13 Feb 2013 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/8995 http://www.VoxEU.org/index.php?q=node/8803 Olivier Blanchard, Jonathan D Ostry, 11 December 2012

The IMF recently endorsed capital controls as useful policy responses to certain circumstances. This column explains the logic and the research that underpins the shift.

Full Article: The multilateral approach to capital controls]]> Tue, 11 Dec 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/8803 http://www.VoxEU.org/index.php?q=node/8084 Olivier Blanchard, 15 June 2012

Latvia was severely hit by the Global Crisis yet its adjustment has been remarkable. Four years after the hit it has one of the highest growth rates in Europe, its euro-peg has held, and the fiscal and current accounts are close to balance. This column outlines seven reasons why its adjustment has worked so well. It warns however that the lessons are not easily exportable.

Full Article: Lessons from Latvia]]> Fri, 15 Jun 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/8084 http://www.VoxEU.org/index.php?q=node/7759 Olivier Blanchard, 23 March 2012

The Greek package has cheered up markets. In this column, the IMF’s Chief Economist Olivier Blanchard argues that the programme deals squarely with the two most fundamental issues facing Greece – high debt and low competitiveness. And it is also fair, asking for sacrifices of both Greece and its creditors.

Full Article: The logic and fairness of Greece’s programme]]> Fri, 23 Mar 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7759 http://www.VoxEU.org/index.php?q=node/7475 Olivier Blanchard, 23 December 2011

2011 was supposed to be the year that saw the back of the Global Crisis. Alas, the crisis is still with us as the North Atlantic banking part of the crisis morphed into the Eurozone crisis, and slow growth in advanced countries once again threatens emerging economies. In this column, IMF chief economist Oliver Blanchard draws the lessons from 2011’s economic and policy developments.

Full Article: Blanchard on 2011’s four hard truths]]> Fri, 23 Dec 2011 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7475 http://www.VoxEU.org/index.php?q=node/6262 Olivier Blanchard, 23 March 2011

The global economic crisis has taught us to question our most cherished beliefs about the way we conduct macroeconomic policy. In this column, IMF chief economist Olivier Blanchard lays out his thoughts, arguing that we are far from a new Washington Consensus. Exploration is the order of the day.

Full Article: The future of macroeconomic policy: Nine tentative conclusions]]> Wed, 23 Mar 2011 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/6262 http://www.VoxEU.org/index.php?q=node/5745 Olivier Blanchard, 5 November 2010

Olivier Blanchard, economic counsellor at the IMF, talks to Romesh Vaitilingam about the two ‘rebalancing acts’ needed for a strong global recovery and the particular challenges facing the US, Europe and the emerging market economies. He also discusses fiscal consolidation, financial reform and ‘currency wars’. The interview was recorded on 4 November 2010 at the Centre for Economic Performance in London, where Blanchard was delivering a special lecture on ‘The State of the World Economy’. [Also read the transcript]

Full Article: The state of the world economy]]> Fri, 05 Nov 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/5745 http://www.VoxEU.org/index.php?q=node/5659 Olivier Blanchard, 12 October 2010

A “strong, balanced, and sustained world recovery” as demanded by the G20 is a daunting challenge for policymakers. This column argues that two rebalancing acts are required: internal rebalancing – replacing government spending with private-sector demand, and external rebalancing – addressing the global imbalances between exporting and importing countries. These two rebalancing acts, it adds, are taking too long.

Full Article: The two rebalancing acts]]> Tue, 12 Oct 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/5659 http://www.VoxEU.org/index.php?q=node/5247 Olivier Blanchard, Carlo Cottarelli, 28 June 2010

The G20 communiqué stresses the difficulty of balancing fiscal stimulus and fiscal consolidation. This column – written by one of the world’s leading macroeconomists, Olivier Blanchard, and his co-author – sums up the research-based policy analysis of the issue.

Full Article: Ten commandments for fiscal adjustment in advanced economies]]> Mon, 28 Jun 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/5247 http://www.VoxEU.org/index.php?q=node/4617 Olivier Blanchard, Giovanni Dell'Ariccia, Paolo Mauro, 16 February 2010

The global crisis forced economic policymakers to react in ways not anticipated by the pre-crisis consensus on how macroeconomic policy should be conducted. Here the IMF’s chief economist and colleagues (i) review the main elements of the pre-crisis consensus, (ii) identify the elements which turned out to be wrong, and (iii) take a tentative first pass at outlining the contours of a new macroeconomic policy framework.

Full Article: Rethinking macro policy]]> Tue, 16 Feb 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/4617 http://www.VoxEU.org/index.php?q=node/4341 Olivier Blanchard, Marianna Riggi, 7 December 2009

In the 1970s, large increases in the price of oil were associated with sharp decreases in output and large increases in inflation. In the 2000s, even larger increases in the price of oil were associated with much milder movements. This column attributes the difference in the US to more flexible labour markets and more credible monetary policy during the Great Moderation.

Full Article: The price of oil and the macroeconomy ]]> Mon, 07 Dec 2009 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/4341 http://www.VoxEU.org/index.php?q=node/3055 Olivier Blanchard, Carlo Cottarelli, Antonio Spilimbergo, Steven Symansky, 12 February 2009

The global crisis demands bold initiatives to i) rescue the financial sector, and ii) boost aggregate demand, with early resolution of financial sector problems being a necessary condition for the stimulus to work. Since monetary policy is at the end of its rope, early, strong, and carefully thought-out fiscal policies are urgently needed. Time and action are of the essence if we are to avoid a contraction larger than any we’ve seen since the 1930s.

Full Article: Fiscal Policy for the Crisis]]> Thu, 12 Feb 2009 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/3055 http://www.VoxEU.org/index.php?q=node/561 Olivier Blanchard, 20 September 2007

Ensuring secure career paths, streamlining layoff procedures, creating a more efficient unemployment insurance system and changing the way it is financed. All these reforms are possible, but they can only be accomplished together.

Full Article: Fixing France’s job market]]> Thu, 20 Sep 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/561 http://www.VoxEU.org/index.php?q=node/188 Olivier Blanchard, Francesco Giavazzi, 1 December 2005

Written in December 2005: No central bank, not even the ECB can focus exclusively on inflation. Adopting policy that allows it to consider economic activity would require the ECB to articulate its rationale with great care, but its British and American counterparts show how. Credibility does not require dogmatism, but rather clarity of purpose.

Full Article: The ECB’s path not taken]]> Thu, 01 Dec 2005 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/188 http://www.VoxEU.org/index.php?q=node/64 Olivier Blanchard, 10 June 2003

Written June 2003: Between falling oil prices, aggressive macro policies and the falling dollar, it is hard to see what stands in the way of a strong recovery in the US. But in Europe, monetary caution, self-imposed fiscal constraints and euro appreciation all point to the dual dangers of deflation and a prolonged slump.

Full Article: The divergent paths of the US and Europe]]> Tue, 10 Jun 2003 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/64