Advanced Search
MyIDEAS: Login

Inflation targeting drawbacks in the absence of a 'natural' anchor

Contents:

Author Info

  • Angel Asensio

    ()
    (CEPN - Centre d'économie de l'Université de Paris Nord - CNRS : UMR7115 - Université Paris-Nord - Paris XIII)

Registered author(s):

    Abstract

    The economic performances of the Eurozone look weaker than those of the United States overthe period 1999-2006, in spite of the fact that the former applies more thoroughly the 'newmacroeconomics' governance rules concerning public deficits and inflation control. Theliterature emphasizes Alan Greenspan's pragmatism when discussing the relative success ofthe Fed, but the reasons why pragmatism ought to do better than a thorough application of the'new macroeconomics' theoretical recommendations remain unexplored. The paper focuses onthe advantage of monetary policy pragmatism in the face of Keynesian uncertainty. Morespecifically, it points out the trials of the 'new macroeconomics' principles of monetary policywhen they are implemented in a Keynesian context, that is, within a system which does nothave any 'natural' anchor.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://halshs.archives-ouvertes.fr/docs/00/18/92/25/PDF/fed-ecb.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number halshs-00189225.

    as in new window
    Length:
    Date of creation: Nov 2007
    Date of revision:
    Publication status: Published - Presented, PostKeynesian economic policy, 2d bi-annual Dijon Conference of the CEMF, Université de Bourgogne., 2007, Dijon, France
    Handle: RePEc:hal:journl:halshs-00189225

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00189225/en/
    Contact details of provider:
    Web page: http://hal.archives-ouvertes.fr/

    Related research

    Keywords: Monetary policy; Post Keynesian; Uncertainty;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. L. Randall Wray & C. Sardoni, 2005. "Monetary Policy Strategies of the European Central Bank and the Federal Reserve Bank of the U.S," Macroeconomics 0511025, EconWPA.
    2. Philip Arestis & Malcolm Sawyer, 2003. "Inflation Targeting: A Critical Appraisal," Economics Working Paper Archive wp_388, Levy Economics Institute.
    3. Preston, Bruce, 2006. "Adaptive learning, forecast-based instrument rules and monetary policy," Journal of Monetary Economics, Elsevier, vol. 53(3), pages 507-535, April.
    4. Jérôme Creel & Jacky Fayolle, 2002. "La Banque Centrale Européenne ou le Seigneur des euros," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(5), pages 175-210.
    5. Thomas I. Palley, . "The Role of Institutions and Policies in Creating High European Unemployment: The Evidence," Economics Working Paper Archive wp_336, Levy Economics Institute.
    6. Philip Arestis & Georgios E. Chortareas, 2007. "Natural equilibrium real interest rate estimates and monetary policy design," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 29(4), pages 621-643, July.
    7. Giuseppe Fontana, 2006. "The Federal Reserve and the European Central Bank: a theoretical comparison of their legislative mandates," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 28(3), pages 433-450, April.
    8. Philip Arestis, 2006. "New Monetary Policy and Keynes," European Journal of Economics and Economic Policies: Intervention, Edward Elgar, vol. 3(2), pages 245-262.
    9. Hinich, Melvin J. & Foster, John & Wild, Phillip, 2006. "Structural change in macroeconomic time series: A complex systems perspective," Journal of Macroeconomics, Elsevier, vol. 28(1), pages 136-150, March.
    10. Tobin, James, 1975. "Keynesian Models of Recession and Depression," American Economic Review, American Economic Association, vol. 65(2), pages 195-202, May.
    11. Mordecai Kurz & Maurizio Motolese, . "Endogenous Uncertainty and Market Volatility," Working Papers 99005, Stanford University, Department of Economics.
    12. Kurz, Mordecai, 1994. "On the Structure and Diversity of Rational Beliefs," Economic Theory, Springer, vol. 4(6), pages 877-900, October.
    13. Paul Davidson, 2006. "Can, or should, a central bank inflation target?," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 28(4), pages 689-703, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00189225. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.