Olivier Blanchard
@ojblanchard1
Robert Solow Professor of economics emeritus, MIT Senior Fellow, Peterson Institute for International Economics
Dear Mohamed, I could not disagree more. The potential candidates have shown a willingness to say anything to please Trump. And caving in to Trump would have gigantic costs in terms of credibility of monetary policy. Yes, it may create volatility in financial markets, but this…
This morning, US government criticism of both Federal Reserve Chair Powell and the institution itself has broadened to include "mission creep" and the effectiveness of other officials. The developments of the last few days reinforce my view: If Chair Powell's objective is to…
Il n'y a pas grand-chose à aimer dans un budget qui propose de réduire substantiellement le déficit. Mais il faut reconnaître que le budget Bayrou a relevé le défi. Il fait face au problème et propose des mesures qui, si elles devaient passer, pourraient s'élever, sinon aux 43…
There is never much to love about a budget that proposes to substantially reduce the deficit. But one must admit that the Bayrou budget has taken up the challenge. It faces the issue, and proposes measures which, if they were to pass, may add up, if not to the 43 billion…
Utile d’etre explicite au risque de se faire insulter : Il ne peut y avoir de vache à lait, que ce soit les tres riches ou les retraités ou tout autre groupe. Diminuer les retraites ne peut etre acceptable que si, par exemple, la sécurité sociale rembourse moins les médicaments,…
Les conséquences de cet état de fait sont claires. Pour obtenir les 140 milliards d’ajustement, il faut changer la nature du jeu politique. Plutôt que de chercher à satisfaire leurs électeurs et de tracer des lignes rouges comme on le voit aujourd’hui à l’Assemblée, les partis…
Time to rewrite the july 8 tweet: I am going to cut your arm Please do not, please, please, here is my finger On second thoughts, i shall cut both of your arms [I let you (or the EU) write the final line.]
On Europe and the 10% tariff: I am going to cut your arm. Please do not, please, please Ok, I shall be generous, and just cut your thumb. Thank you, thank you. You are so generous. [I very much hope i am wrong]
PS1. Think of common intelligent retaliation not just by EU, but EU+Japan+Canada+Brazil+whoever is willing to participate. The more countries, the better the common intelligent retaliation list. By cutting more sources, common tariffs on some products hurt the US more; by…
Tariffs on EU goods just announced: 30% across the board, probably higher in some sectors. Being nice, giving up the digital tax, did not achieve anything for Europe. Intelligent retaliation is of the essence, even if it leads to dangerous economic and geopolitical waters in…
nice to see the beautiful child of one of your (intellectual) children. Thank you Lukasz.
We use the beautiful @ojblanchard1-Yaari NK model. We call it HANK as it mirrors same mechanisms and intuitions (Farhi-@IvanWerning). The main thing: deficits and debt directly affect demand, and inflation devalues nominal assets: rich and realistic two-way interaction. 3/N
The importance of information for #tax design: Evidence from the French wealth tax Bertrand Garbinti @CrestUmr @ENSAEparis, Jonathan Goupille-Lebret @ENSdeLyon @CNRS, @MathildeMunoz, @S_Stantcheva, @gabriel_zucman ow.ly/auVo50WkSSf
Une interview avec Terra Nova jeunes. 15-20 premieres minutes: Une discussion peut etre interessante (specialement pour les etudiants en macro) sur le role et la nature des modeles en macroeconomie. terranovajeunes.wordpress.com/2025/07/08/la-…
On Europe and the 10% tariff: I am going to cut your arm. Please do not, please, please Ok, I shall be generous, and just cut your thumb. Thank you, thank you. You are so generous. [I very much hope i am wrong]