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Bilan sur le consensus de Jackson Hole

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  • Anne-Marie Rieu-Foucault

Abstract

Before the 2007 crisis, the monetary authorities agreed in Jackson Hole for independence between monetary policy and financial stability. They thus validated the mandate of central banks with the objective of price stability. This point, however, is debated. This paper takes the arguments that led to the Jackson Hole consensus before the crisis and then revisits them in the light of the 2007 crisis. Financial imbalances and the existence of a risk-taking channel need to be addressed by economic policy. After the crisis, the monetary authorities chose to implement macroprudential policies to address this concern but did not question the independence between monetary policy and financial stability, resulting in the separation of monetary policy and macro-prudential policies. The limitations of macroprudential tools may, however, lead to changes in the central bank's strategy or mandate for the integration of a financial stability objective into monetary policy.

Suggested Citation

  • Anne-Marie Rieu-Foucault, 2018. "Bilan sur le consensus de Jackson Hole," EconomiX Working Papers 2018-49, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2018-49
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    More about this item

    Keywords

    Monetary policy; Financial Stability; Central banks;
    All these keywords.

    JEL classification:

    • 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
    • G01 - Financial Economics - - General - - - Financial Crises

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