Conversation with Olivier Blanchard

Olivier Blanchard's latest book (Les grands défis économiques), his recent publications and his numerous contributions to the public debate allow us to organize our discussion on optimal policy, which is a mix between a traditional view of monetary policy and a view that thinks of fiscal policy as the main instrument of stabilization; optimal policy is between the two, and depends, among other things, on the dynamism of private demand. The discussion between Olivier Blanchard, Jean-Paul Pollin and Xavier Ragot is therefore divided into three parts, on low interest rates, on the sustainability of public debt and on the consequences for the definition of optimal policies in Europe and in France.