The global financial crisis led to a broad rethink of macroeconomic and financial policies in the global academic and policy community. Eight months into the job as IMF Chief Economist, Maury Obstfeld reflects on the IMF’s role in this rethinking and in furthering economic and financial stability.
In an interview, Obstfeld notes that given the impacts of IMF decisions on member countries and the global economic system, it is especially important for the institution to constantly re-evaluate its thinking in light of new evidence.
He talks about fiscal policy, citing that “nobody wants needless austerity,” as well as on the Fund’s work on capital flows and trade.
Even as the Fund’s thinking evolves, Obstfeld says that the process has not “fundamentally changed the core of our approach, which is based on open and competitive markets, robust macro policy frameworks, financial stability, and strong institutions."
Read interview here.