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Monetary Policy and Value Judgments : Did we forget Myrdal's legacy ?

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  • Nicolas Barbaroux

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Michel Bellet

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Myrdal's works are usually analysed with a dual and separated point of view : on the one hand the methodological papers concerning the value problem and based on a strong non neutrality thesis ; on the other part the theoretical analysis concerning monetary theory and policy, with a Wicksellian filiation. In fact both the dimensions are strongly connected by a common way : the application of the Hägerström's Swedish guillotine between is and ought, but also the construction of a bridge between economic science and political views on social engineering and economic policy. Myrdal wants to address this problem : how economic science can become politically relevant ? This paper analyses two stages of that unique project : the proposition of a "technology of economics" (1930), and the selection process for a "norm for monetary policy" (1939). It shows that Myrdal distorts an initial end and means scheme by proposing some intermediary concepts between positive and normative fields. From a theoretical and statistical framework and an explicit value judgment these concepts enable to elaborate an iterative tree of selection of a speci-c monetary policy. If the Myrdal's project encounters difficulties in conciliating a non-cognitivist thesis with economic prescriptions and in proposing a tractable method, it remains an important benchmark for the analysis of the links between positive and normative views concerning monetary policy.

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  • Nicolas Barbaroux & Michel Bellet, 2014. "Monetary Policy and Value Judgments : Did we forget Myrdal's legacy ?," Working Papers halshs-00952009, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00952009
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00952009
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    References listed on IDEAS

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    1. Cherrier, Beatrice, 2009. "Gunnar Myrdal And The Scientific Way To Social Democracy, 1914–1968," Journal of the History of Economic Thought, Cambridge University Press, vol. 31(1), pages 33-55, March.
    2. Lars E O Svensson, 2005. "Monetary Policy with Judgment: Forecast Targeting," International Journal of Central Banking, International Journal of Central Banking, vol. 1(1), May.
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    4. Pier Francesco Asso & Robert Leeson, 2012. "Monetary Policy Rules - From Adam Smith to John Taylor," Book Chapters, in: Evan F. Koenig & Robert Leeson & George A. Kahn (ed.), The Taylor Rule and the Transformation of Monetary Policy, chapter 2, Hoover Institution, Stanford University.
    5. Nicolas Barbaroux, 2013. "Monetary Policy in Theory and Practice: Facing Internal vs External Stability Dilemma," Post-Print halshs-00667705, HAL.
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    1. Antoinette Baujard, 2013. "Value judgments and economics expertise," Working Papers 1314, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    2. Correa Romar, 2015. "The Coordination Problem in the Stockholm School," Journal of Heterodox Economics, Sciendo, vol. 2(2), pages 138-150, December.

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    value judgment; monetary policy; positive analysis; normative analysis;
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