This article, which serves as an introduction to the <italic>Oxford Review of Economic Policy</italic>’s issue on ‘Macroeconomic Policy Coordination: Global Imbalances and Global Growth’, charts the evolution of international macroeconomic policy coordination from the end of the Second World War until the...

This paper describes the origins of the global financial crisis and how the prevailing New Keynesian macroeconomic orthodoxy failed to anticipate its severity. This failure, we argue, stemmed from an incomplete understanding of the pivotal role of financial institutions in the amplification of...