Blanchard: Looking forward, Looking back:
"There is a good chance that we have entered a period of low productivity growth. There is a chance that we have entered a period of structurally weak demand, which will require very low interest rates. And low growth combined with increasing inequality, is not only unacceptable morally, but extremely dangerous politically.
In assessing policies, we cannot just concentrate on short run issues, and we have to address these longer run issues. In doing so, we have to realize two things. First, that this is not our natural expertise, and we have to work with other institutions like the OECD, the World Bank. Second, that there are no magical solutions: We have to be realistic as to what structural reforms are politically feasible, and what they can reasonably achieve."
More in the interview and discussion in Economist's View