Staff Position Notes (SPNs) showcase new policy-related analysis and research by IMF departments. SPNs are concise, employ nontechnical language, and aim at a broad audience interested in economic policy issues, including staff involved in mission work, members of the Executive Board, and readers outside the Fund. This series replaced IMF Policy Discussion Papers at the end of 2008. Most SPNs are limited to 25 pages and present only a few simple equations, tables, and charts; this format distinguishes them from IMF Working Papers, which tend to be longer and generally more technical in nature.
Olivier Blanchard, Giovanni Dell'Ariccia, and Paolo Mauro
INTERNATIONAL MONETARY FUND
The great moderation lulled macroeconomists and policymakers alike in the belief that we knew how to conduct macroeconomic policy. The crisis clearly forces us to question that assessment. In this paper, we review the main elements of the pre-crisis consensus, we 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.