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Olivier Blanchard

More Proof Conservative Supply-Side Economic Policies Do Not Work!

Marvin Meadors | Posted 10.23.2015 | Politics
Marvin Meadors

Rarely do bureaucracies like the IMF admit error. In fact, the organization has long been criticized for pushing free-market oriented solutions which ignore local conditions.

Greece: Past Critiques and the Path Forward

Olivier Blanchard | Posted 07.10.2015 | World
Olivier Blanchard

All eyes are on Greece, as the parties involved continue to strive for a lasting deal, spurring vigorous debate and some sharp criticisms, including of the IMF. In this context, I thought some reflections on the main critiques could help clarify some key points of contention as well as shine a light on a possible way forward.

Greece Has Made Tough Choices. Now It's the IMF's Turn.

James K. Galbraith | Posted 06.17.2015 | World
James K. Galbraith

ATHENS -- The IMF and Greece's other creditors have assumed that massive fiscal contraction has only a temporary effect on economic activity, employment and taxes, and that slashing wages, pensions and public jobs has a magical effect on growth. This has proved false. Indeed, Greece's post-2010 adjustment led to economic disaster -- and the IMF's worst predictive failure ever.

Greece: A Credible Deal Will Require Difficult Decisions By All Sides

Olivier Blanchard | Posted 06.19.2015 | World
Olivier Blanchard

The status of negotiations between Greece and its official creditors -- the European Commission, the ECB and the IMF -- dominated headlines last week.  At the core of the negotiations is a simple question: How much of an adjustment has to be made by Greece, how much has to be made by its official creditors?

Four Forces Facing the Global Economy

Olivier Blanchard | Posted 06.14.2015 | Business
Olivier Blanchard

Behind the numbers lies an unusually complex set of forces shaping the world economy. Some, such as the decline in the price of oil and the evolution of exchange rates, are highly visible. Some, from crisis legacies to lower potential growth, play more of behind-the-scenes role but are important nevertheless. Let me briefly review them.

7 Questions About the Recent Oil Price Slump

Olivier Blanchard | Posted 02.21.2015 | Business
Olivier Blanchard

Oil prices have plunged recently, affecting everyone: producers, exporters, governments, and consumers.  Overall, we see this as a shot in the arm for the global economy. There is, however, much more to this complex and evolving story.

IMF Report--Europe Is Becoming Japan

Harlan Green | Posted 12.09.2014 | Business
Harlan Green

The International Monetary Fund doesn't want to say it outright, but its latest World Economic Outlook shows more stagnation of the European and Japanese economies, and the possibility of a third EU recession since 2008.

Legacies, Clouds and Uncertainties

Olivier Blanchard | Posted 12.08.2014 | Business
Olivier Blanchard

Among advanced countries, the United States and the United Kingdom in particular are leaving the financial crisis behind and achieving decent growth. Even for them however, potential growth is lower than it was in the early 2000s.

As Demand Improves, Time to Focus More on Supply

Olivier Blanchard | Posted 06.08.2014 | Business
Olivier Blanchard

The dynamics that were emerging at the time of the October 2013 World Economic Outlook are becoming more visible. Put simply, the recovery is strengthening.

Recovery Strengthening, But Much Work Remains

Olivier Blanchard | Posted 03.23.2014 | Business
Olivier Blanchard

Among advanced economies, it is stronger in the US than in Europe, stronger in the euro core than in Southern Europe. In most advanced economies, unemployment remains much too high. And downside risks remain.

International Policy Coordination: The Loch Ness Monster

Olivier Blanchard | Posted 02.15.2014 | Business
Olivier Blanchard

International policy coordination is like the Loch Ness monster: much discussed but rarely seen. Going back over the decades, and even further in history to the period between the Great Wars, coordination efforts have been episodic.

Monetary Policy Will Never Be the Same

Olivier Blanchard | Posted 02.04.2014 | Business
Olivier Blanchard

Two weeks ago, the IMF organized a major research conference, in honor of Stanley Fischer, on lessons from the crisis. Here is my take.

Advanced Economies Strengthening, Emerging Market Economies Weakening

Olivier Blanchard | Posted 01.23.2014 | Business
Olivier Blanchard

The recovery from the crisis continues, albeit too slowly. While the focus at this time is more on emerging market economies, other legacies of the crisis are still very much present and advanced economies are not out of the woods.

Global Outlook -- Still Three Speeds, But Slower

Olivier Blanchard | Posted 07.09.2013 | Business
Olivier Blanchard

After years of strong growth, the BRICS in particular are beginning to run into speed bumps. This means that the focus of policies will increasingly need to turn to boosting potential output growth or, in the case of China, to achieving more sustainable and balanced growth.

Rethinking Macroeconomic Policy

Olivier Blanchard | Posted 06.29.2013 | Business
Olivier Blanchard

Rethinking and reforms are both taking place. But we still do not know the final destination, be it for the redefinition of monetary policy, or the contours of financial regulation, or the role of macroprudential tools.

The World's Three Speed Economic Recovery

Olivier Blanchard | Posted 06.16.2013 | Business
Olivier Blanchard

Emerging market and developing economies are still going strong, but in advanced economies, there appears to be a growing bifurcation between the United States on the one hand, and the Euro area on the other.

IMF Experts Admit They Were Wrong About Austerity

Reuters | Posted 03.05.2013 | Business

By Anna Yukhananov WASHINGTON, Jan 3 (Reuters) - Belt-tightening in advanced economies may not be as harmful to growth now as it was d...

Jobs. Jobs. Jobs. Getting the Labor Markets Working Again

Olivier Blanchard | Posted 01.08.2013 | Business
Olivier Blanchard

The sharp and persistent rise in unemployment in advanced economies since the 2008-09 financial crisis is a hotly debated policy issue. Rightly so: ...

Global Economy: Some Bad News and Some Hope

Olivier Blanchard | Posted 12.09.2012 | Business
Olivier Blanchard

The world economic recovery continues, but it has weakened further. In advanced countries, growth is now too low to make a substantial dent in unemployment. And in major emerging countries, growth that had been strong earlier has also decreased.

World Faces Weak Economic Recovery

Olivier Blanchard | Posted 09.15.2012 | Business
Olivier Blanchard

The world recovery can continue, and can strengthen. The right pace of fiscal consolidation, continuing expansionary monetary policy, getting the financial sector back to health to decrease borrowing costs, and solidarity, especially within the Euro zone, are all of the essence.

Lessons From Latvia

Olivier Blanchard | Posted 08.12.2012 | Business
Olivier Blanchard

The Latvian experience makes a strong political case for taking into account adjustment fatigue in Europe.

The Logic and Fairness of Greece's Program

Olivier Blanchard | Posted 05.20.2012 | Business
Olivier Blanchard

To get back to health, Greece needs two things. First, a lower debt burden. Second, improved economic competitiveness. The new program addresses both.

2011 In Review: Four Hard Truths

Olivier Blanchard | Posted 02.20.2012 | Business
Olivier Blanchard

As the year draws to a close, the recovery in many advanced economies is at a standstill, with some investors even exploring the implications of a potential breakup of the euro zone, and the real possibility that conditions may be worse than we saw in 2008.

IMF: Eurozone Agrement Only Partial Solution To Debt Crisis

Posted 12.11.2011 | Business

TEL AVIV (Tova Cohen and Ari Rabinovitch) - An agreement reached by European countries for deeper economic integration was a step in the right di...

Strong Policy Action -- The Essence of Restoring Global Economic Hope

Olivier Blanchard | Posted 11.21.2011 | Business
Olivier Blanchard

The global economy has entered a dangerous new phase. The recovery has weakened considerably, and downside risks have increased sharply. Strong policies are urgently needed to improve the outlook and reduce risks.