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• Mike Kennedy

In this paper policy issues related to the operation of monetary policy in a low inflation environment are discussed. The successful reduction of inflation rates in a number of OECD countries in recent years arguably represents a regime shift that is likely to affect the operation of monetary policy. Some of the practical issues involved are the potential existence of a trade-off between inflation variability and output variability, asymmetries in the short-run Phillips curve, the interaction between monetary and fiscal policies, the effectiveness of monetary policy instruments, the appropriate specification of the price stability objective, as well as the credibility of monetary policy in a near price-stability environment. The results indicate that under many circumstances none of these issues should cause major difficulties at price stability. Furthermore, the analysis tends to strengthen the argument for maintaining relatively tight control over inflation. Sound fiscal policies ...

Problèmes relatifs à la conduite de la politique monétaire dans un environnement de stabilité des prix

Dans ce document sont discutés les enjeux de politique économique ayant trait à la mise en oeuvre de la politique monétaire dans un contexte de faible inflation. Le succès rencontré dans la réduction des taux d’inflation dans un certain nombre de pays de l’OCDE ces dernières années représente un changement de régime qui affectera vraisemblablement la conduite de la politique monétaire. Parmi les conséquences pratiques de ce changement, on peut noter l’existence potentielle d’un arbitrage entre la variabilité de l’inflation et celle de la production, l’asymétrie de la courbe de Phillips à court terme, l’interaction entre les politiques monétaires et budgétaires, la spécification appropriée des objectifs de stabilité des prix, ainsi que la crédibilité de la politique monétaire dans un contexte de prix presque stables. Les résultats indiquent que dans de nombreuses circonstances, aucune de ces questions ne pose de difficulté majeure en régime de stabilité des prix. L’analyse tend même ...

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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 158.

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Date of creation: 1995
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Handle: RePEc:oec:ecoaaa:158-en

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