Central Banks’ Objective Policies in Perspective

Central Banks’ Objective Policies in Perspective

Initially mainly dedicated to financial stability tasks, central banks did not develop their macroeconomic steering role until after the Second World War. The 1973 collapse of the Bretton Wood system led them to replace the loss of external monetary anchoring with domestic objectives, first targeted...

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Auteurs principaux: Jaillet, Pierre, Mojon, Benoît
Format: Article ou chapitre numérique
Langue:Français
Publié: 2019
Accès en ligne:Accès Université d'Orléans et IFPM
Accès Université d'Orléans et IFPM
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spelling cairn-RFE_183_0128RFERevue française d'économie https://shs.cairn.info/revue-francaise-d-economie-2018-3-page-62a?lang=en https://doi.org/10.3917/rfe.183.0128 Central Banks’ Objective Policies in Perspective Jaillet, PierreMojon, Benoît2019 fre Revue française d'économie | XXXIII | 3 | 2019-01-29 | p. 62a-101a | 0769-0479 RFE_18339 Initially mainly dedicated to financial stability tasks, central banks did not develop their macroeconomic steering role until after the Second World War. The 1973 collapse of the Bretton Wood system led them to replace the loss of external monetary anchoring with domestic objectives, first targeted at monetary aggregates and then, from the 1980s onwards, at inflation. Through a process of experimentation-imitation, inflation targeting has become widespread in most OECD countries and in many emerging countries. However, the 2008 crisis sparked a wide-ranging debate on the validity of such a strategy in a low-inflation environment. The paper presents counterfactual simulations of alternative options for nominal GDP and the price level. While these options have advantages, for example in terms of the responsiveness of monetary policy in turbulent times, they do not invalidate flexible inflation targeting policies as practiced in large currency areas. The crisis has also put financial stability tasks back at the heart of central banks’ concerns, raising three questions related to their scope of competence, its compatibility with their independence status and the interactions between their monetary and prudential functions.Cairn free access
language Français
format Article ou chapitre numérique
building 0/Bibliothèque numérique/
1/Bibliothèque numérique/Cairn/
description Initially mainly dedicated to financial stability tasks, central banks did not develop their macroeconomic steering role until after the Second World War. The 1973 collapse of the Bretton Wood system led them to replace the loss of external monetary anchoring with domestic objectives, first targeted at monetary aggregates and then, from the 1980s onwards, at inflation. Through a process of experimentation-imitation, inflation targeting has become widespread in most OECD countries and in many emerging countries. However, the 2008 crisis sparked a wide-ranging debate on the validity of such a strategy in a low-inflation environment. The paper presents counterfactual simulations of alternative options for nominal GDP and the price level. While these options have advantages, for example in terms of the responsiveness of monetary policy in turbulent times, they do not invalidate flexible inflation targeting policies as practiced in large currency areas. The crisis has also put financial stability tasks back at the heart of central banks’ concerns, raising three questions related to their scope of competence, its compatibility with their independence status and the interactions between their monetary and prudential functions.
author Jaillet, Pierre
Mojon, Benoît
spellingShingle Jaillet, Pierre
Mojon, Benoît
Central Banks’ Objective Policies in Perspective
author_facet Jaillet, Pierre
Mojon, Benoît
author_sort Jaillet, Pierre
title Central Banks’ Objective Policies in Perspective
title_short Central Banks’ Objective Policies in Perspective
title_full Central Banks’ Objective Policies in Perspective
title_fullStr Central Banks’ Objective Policies in Perspective
title_full_unstemmed Central Banks’ Objective Policies in Perspective
title_sort central banks’ objective policies in perspective
publishDate 2019
container_title
container_issue
url https://ezproxy.univ-orleans.fr/login?url=https://shs.cairn.info/revue-francaise-d-economie-2018-3-page-62a?lang=en
https://ezproxy.univ-orleans.fr/login?url=https://doi.org/10.3917/rfe.183.0128
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