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« Nouvelle normale » ou « nouvelle orthodoxie » ?. Éléments d’un nouveau cadre d’action pour les banques centrales

Author

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  • Christian Pfister
  • Natacha Valla

Abstract

The paper contrasts two different approaches to central banking in the aftermath of the crisis.?In the first one, labelled ?new normal,? the monetary policy strategy is broadened to encompass such objectives as financial stability or full employment. Furthermore, the inflation target is raised and large scale asset purchases (LSAPs) are retained as a standard instrument for implementing monetary policy.?In the second approach, which we label ?new orthodoxy,? central banks keep the same objectives but interest rates can be brought to unprecedented negative levels, thus making LSAPs possibly unnecessary.?The role of central banks in preserving financial stability is also explicitly recognized, both by themselves and by society, making their contribution to this task more effective and transparent.?We explain why the new orthodoxy should be a superior strategy and describe its institutional preconditions and practical implementation. Classification JEL : E42, E43, E50, E52, E58.

Suggested Citation

  • Christian Pfister & Natacha Valla, 2017. "« Nouvelle normale » ou « nouvelle orthodoxie » ?. Éléments d’un nouveau cadre d’action pour les banques centrales," Revue économique, Presses de Sciences-Po, vol. 68(HS1), pages 41-62.
    • Handle: RePEc:cai:recosp:reco_hs02_0041
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    Cited by:

    1. Pierre Jaillet & Benoît Mojon, 2018. "Les politiques d’objectifs des banques centrales en perspective," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 21-61.

    More about this item

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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