Purpose of the Initiative

This Preface explains the purpose of the collected essays on “normalization” of monetary policy after the unexpected rise of inflation. It shortly examines the problems related to the increasingly involving of money creation in guaranteeing financial stability, in the development of data science and Fintech, in the weakness of forecasts based on econometric models, in the irreconcilability of legal treatment of common and civil law regimes in front of interfungible operations on global markets, in the creation of the digital euro and ongoing changes in the geopolitical-economic utility function. All these factors require a re-examination of the interpretative models of how the markets for real and financial goods function, and empirical implementation which raise doubts about the possibility of a normalization of monetary policy, if we mean a return to the principle on which rests the independence of the monetary authorities, i.e., the stability of prices. The analysis starts from Keynes’ proposal in his 1924 book entitled A Tract on Monetary Reform that the authors consider the beginning of modern theory of money and want to celebrate the ongoing centenary.