With a debate between Olivier Blanchard and Emiliano Brancaccio

ANTI-BLANCHARD MACROECONOMICS. A COMPARATIVE APPROACH. 2nd edition. By Emiliano Brancaccio with Andrea Califano. With an endorsement by Olivier Blanchard. Edward Elgar Publishing (UK and US) 2022, pp. 256. ISBN: 9781802200751. DOI: 10.4337/9781802200768 

Contents: Presentation by Mauro Gallegati – Preface by Robert Skidelsky – Acknowledgements – 1. Introduction – 2. Blanchard’s AS-AD model – 3. The alternative model – 4. Blanchard’s “new approach”: the IS-LM-PC model – 5. The competing approaches: theory and policy – Appendix I: Labour flexibility and unemployment by Domenico Suppa – Appendix II: Contractionary fiscal policy and multipliers by Andrea Califano and Fabiana De Cristofaro – Appendix III: On the pandemic trade-off between health and production by Emiliano Brancaccio and Raffaele Giammetti. – Crisis and revolution in economic theory and policy: a debate between Olivier Blanchard and Emiliano Brancaccio – Further readings – Index.

Novelties of the 2nd edition: Financial globalization, Tobin tax and capital controls – The dispute over the crisis of the European Monetary Union – Speculators against central banks – A few notes on immigration, unemployment and wages – A comparative approach to the stock market – Growth and climate change – The economic consequences of Covid-19 – Market versus planning – On the pandemic trade-off between health and production – Crisis and revolution in economic theory and policy: a debate between Olivier Blanchard and Emiliano Brancaccio.

Critical acclaim: “When Emiliano asked me to endorse Anti-Blanchard Macroeconomics, I was a bit taken aback. You can guess why. But I agree with him that we should always question our assumptions, confront them with the facts, and be open to change if the facts dictate it. Questions such as whether we can expect the economy to return to health by itself, whether recessions have permanent adverse effects, whether the interest rate channel of monetary policy works, are essential ones. For the time being, I stand by the conclusions of my textbook, but I am happy and indeed eager to see them challenged” (Olivier Blanchard). “Beyond its provocative title, the Anti-Blanchard raises constructive critiques of our approach to macroeconomics teaching” (Alessia Amighini and Francesco Giavazzi, coauthors of the European edition of Blanchard’s Macroeconomics). “Even if designed for students, this textbook offers food for thought also to researchers interested in reopening a debate on the foundations of contemporary macroeconomics” (Mauro Gallegati). “It is an excellent way to understand both analytical strengths and weaknesses of the mainstream approach” (Tortsen Niechoj). “The Anti-Blanchard increases variety in macroeconomic theory: it shows what is wrong with the dominant theory and draws attention to its alternatives” (Heinz D. Kurz). “The fact that one of the cardinals of pre-crash macroeconomic orthodoxy is willing to commend this heterodox text, is evidence of the mess in which orthodox macroeconomics finds itself after the collapse of 2007-09” (Robert Skidelsky).

A review by Torsten Niechoj (EJEPP 2020)

A review by Samuele Bibi (Cuadernos de Economia 2020)

– Debate Blanchard & Brancaccio

– Do we need to rethink economics education? (Bocconi University)