Fiscal Policy and Macroeconomics...

Interesting panel discussion on fiscal policy from February's MIT's 150 anniversary symposium.  I particularly enjoyed Olivier Blanchard's remarks on the Eurozone debt crisis and the recent currency dispute between China and the U.S. 

Blanchard looked a bit uncomfortable during the question and answer segment when panel moderator Ricardo Caballero tried to get him to speculate about what might happen if the Eurozone was unable to address their debt issues fast enough for the "markets" and a new crisis took hold.

I suppose it is unwise to prod the Chief Economist at the IMF to speculate about what might happen if countries the IMF is currently loaning billions of dollars to were to effectively default on those obligations.