In the Wake of the Crisis: Leading Economists Reassess Economic Policy

by Olivier Blanchard (Editor), David Romer (Editor), Michael Spence (Editor), Joseph E. Stiglitz (Editor)

Overview

Prominent economists reconsider the fundamentals of economic policy for a post-crisis world.

In 2011, the International Monetary Fund invited prominent economists and economic policymakers to consider the brave new world of the post-crisis global economy. The result is a book that captures the state of macroeconomic thinking at a transformational moment.

The crisis and the weak recovery that has followed raise fundamental questions concerning macroeconomics and economic policy. These top economists discuss future directions for monetary policy, fiscal policy, financial regulation, capital-account management, growth strategies, the international monetary system, and the economic models that should underpin thinking about critical policy choices.

Contributors
Olivier Blanchard, Ricardo Caballero, Charles Collyns, Arminio Fraga, Már Guðmundsson, Sri Mulyani Indrawati, Otmar Issing, Olivier Jeanne, Rakesh Mohan, Maurice Obstfeld, José Antonio Ocampo, Guillermo Ortiz, Y. V. Reddy, Dani Rodrik, David Romer, Paul Romer, Andrew Sheng, Hyun Song Shin, Parthasarathi Shome, Robert Solow, Michael Spence, Joseph Stiglitz, Adair Turner

Product Details

ISBN-13:	9780262526821
Publisher:	MIT Press
Publication date:	08/29/2014
Series:	The MIT Press
Pages:	256
Product dimensions:	8.50(w) x 5.70(h) x 0.80(d)
Age Range:	18 Years

About the Author

Olivier Blanchard is C. Fred Bergsten Senior Fellow at the Peterson Institute for International Economics in Washington, DC. He was Chief Economist at the International Monetary Fund from 2008 to 2015.

David Romer is Herman Royer Professor of Political Economy at the University of California, Berkeley.

Michael Spence, co-recipient of the 2001 Nobel Prize in Economics, is Professor Emeritus of Management at Stanford University's Graduate School of Business and Professor of Economics at New York University's Stern School of Business. He served as Chairman of the Commission on Growth and Development from 2006 to 2010 (the life of the commission). He is the author of The Next Convergence: The Future of Economic Growth in a Multispeed World.

Joseph Stiglitz, a 2001 Nobel Laureate, is University Professor at Columbia University.

Olivier Blanchard is C. Fred Bergsten Senior Fellow at the Peterson Institute for International Economics in Washington, DC. He was Chief Economist at the International Monetary Fund from 2008 to 2015.

Otmar Issing is President of the Center for Financial Studies at Goethe University in Frankfurt. He has been a member of the executive boards of the Bundesbank (German Central Bank) and the European Central Bank (where he was also Chief Economist). He is the author of The Birth of the Euro and Monetary Policy in the Euro Area.

Joseph Stiglitz, a 2001 Nobel Laureate, is University Professor at Columbia University.

David Romer is Herman Royer Professor of Political Economy at the University of California, Berkeley.

Robert M. Solow is Institute Professor of Economics.

Adair Turner, Chairman of Britain's Financial Services Authority from September 2008 to March 2013, is a Senior Fellow of the Institute for New Economic Thinking. He is Visiting Professor at the London School of Economics and at Cass Business School, City University London, and the author of Just Capital: The Liberal Economy.

Ricardo J. Caballero is Ford International Professor of Economics at MIT.

Dani Rodrik is Ford Foundation Professor of International Political Economy at Harvard's John F. Kennedy School of Government.

Michael Spence, co-recipient of the 2001 Nobel Prize in Economics, is Professor Emeritus of Management at Stanford University's Graduate School of Business and Professor of Economics at New York University's Stern School of Business. He served as Chairman of the Commission on Growth and Development from 2006 to 2010 (the life of the commission). He is the author of The Next Convergence: The Future of Economic Growth in a Multispeed World.

Maurice Obstfeld is Class of 1958 Professor of Economics at the University of California, Berkeley.

Table of Contents

Preface ix

I Monetary Policy

Questions: How Should the Crisis Affect Our Views of Monetary Policy? 3

1 Monetary Policy in the Wake of the Crisis Olivier Blanchard 7

2 Conventional Wisdom Challenged? Monetary Policy after the Crisis Guillermo Ortiz 15

3 Lessons for Monetary Policy Otmar Issing 25

4 Macroeconomics, Monetary Policy, and the Crisis Joseph Stiglitz 31

II Fiscal Policy

Questions: How Should the Crisis Affect Our Views of Fiscal Policy? 45

5 Fiscal Stimuli and Consolidation Parthasarathi Shome 49

6 What Have We Learned about Fiscal Policy from the Crisis? David Romer 57

7 Fiscal Policy Responses to Economic Crisis: Perspectives from an Emerging Market Sri Mulyani Indrawati 67

8 Fiscal Policy Robert Solow 73

III Financial Intermediation and Regulation

Questions: How Should the Crisis Affect Our Views about Financial Intermediation and Regulation? 79

9 Financial Crisis and Financial Intermediation: Asking Different Questions Y. V. Reddy 83

10 Global Liquidity Hyun Song Shin 91

11 Optimal Financial Intermediation: Why More Isn't Always Better Adair Turner 101

12 Process, Responsibility, and Myron's Law Paul Romer 111

IV Capital-Account Management

Questions: How Should the Crisis Affect Our Views of Capital-Account Management? 127

13 Notes on Capital-Account Management Ricardo Caballero 129

14 Remarks on Capital-Account Management and Other Macropolicy Topics Arminio Fraga 133

15 Capital-Account Management: Key Issues Rakesh Mohan 137

16 The Case for Regulating Cross-Border Capital Flows José Antonio Ocampo 145

V Growth Strategies

Questions: How Should the Crisis Affect Our Views of Growth and Growth Strategies? 153

17 Do We Need to Rethink Growth Policies? Dani Rodrik 157

18 Is the Chinese Growth Model Replicable? Andrew Sheng 169

19 Growth in the Postcrisis World Michael Spence 175

VI The International Monetary System

Questions: How Should the Crisis Affect Our Views of the International Monetary System? 187

20 The Implications of Cross-Border Banking and Foreign-Currency Swap Lines for the International Monetary System Már Gu∂mundsson 191

21 The International Monetary System Olivier Jeanne 199

22 International Monetary System Reform: A Practical Agenda Charles Collyns 209

23 Liquidity and the International Monetary System Maurice Obstfeld 215

Concluding Remarks Olivier Blanchard 225

List of Contributors 229

Index 233

What People are Saying About This

From the Publisher

"This collection of specialized papers, written by well-known scholars in their fields of macroeconomics, does an excellent job of not only explaining the financial crisis but also answering some of the concerns that policy makers have raised regarding the effectiveness of both monetary and fiscal policy."—R.M.Ramazani, Choice

The MIT Press

Editorial Reviews

This collection of specialized papers, written by well-known scholars in their fields of macroeconomics, does an excellent job of not only explaining the financial crisis but also answering some of the concerns that policy makers have raised regarding the effectiveness of both monetary and fiscal policy.—R.M.Ramazani, Choice—

From the Publisher

This collection of specialized papers, written by well-known scholars in their fields of macroeconomics, does an excellent job of not only explaining the financial crisis but also answering some of the concerns that policy makers have raised regarding the effectiveness of both monetary and fiscal policy.

Choice R.M.Ramazani

This collection of specialized papers, written by well-known scholars in their fields of macroeconomics, does an excellent job of not only explaining the financial crisis but also answering some of the concerns that policy makers have raised regarding the effectiveness of both monetary and fiscal policy.—R.M.Ramazani, Choice

Reviews