The Haavelmo Lecture 2017 with Olivier Blanchard

Olivier Blanchard, Professor emeritus at MIT and former chief economist at the International Monetary Fund, will hold a lecture on the natural rate unemployment hypothesis, in honour of Trygve Haavelmo.

Professor Olivier Blanchard

Professor Olivier Blanchard is former chief economist at the IMF and the Haavelmo lecturer of 2017. Photo: IMF/Stephen Jaffe.

In his Haavelmo lecture Blanchard asks: "Should we reject the natural rate of unemployment hypothesis?". The natural rate hypothesis was developed by Milton Friedman and Edmund Phelps in the 1960s and it claims that a certain degree of unemployment is unavoidable in a free labour market. The hypothesis involved two key policy propositions:

  • the natural rate of unemployment is independent of monetary policy

  • there is no long-run trade-off between unemployment and inflation

In the lecture, Blanchard reviews the arguments and the micro and macro evidence against each proposition.

See Blanchard's presentation here [PDF]

About Olivier Blanchard

Professor Olivier Blanchard is the president elect of the American Economic Association and senior fellow at the Peterson Institute for International Economics. He held the position as Chief Economist at the International Monetary Fund (IMF) in 2008-2015 and guided the fund through the global economic recession in these years. He is also Robert M. Solow Professor of Economics emeritus at MIT and the author of widely used textbooks at the undergraduate and graduate level.

Visit Blanchard's homepage at the Peterson Institute for International Economics for recent contributions.


NB: Coffee and fruit will be served outside the auditorium from 2 p.m. The event is open to all interested.




Published Nov. 13, 2017 11:34 AM - Last modified Oct. 11, 2022 11:52 AM