LORENZETTI, Ambrogio -- Allegory of the Good Government (detail) -- 1338-40 -- Siena
As part of the series of lectures my colleagues and I give to our Master students on Contemporary Economic Challenges, I'm talking tomorrow about Monetary Policy.
How do authorities conduct a monetary policy to achieve price stability?
Ensuring economic growth, low unemployment and price stability are the three main objectives
that monetary and fiscal authorities target with the help of macroeconomic theory. Controlling
inflation is nowadays mostly in the hand of independent monetary authorities: their aim is to
allow private agents to engage in economic activities and investments without fear for the
future. This lecture reviews the mechanisms presiding over the determinati...
Last week OECD welcomed the Institute of New Economic Thinking (INET) for their annual conference on"Liberté, Egalité, Fragilité". INET is an institute that works and funds economists who aim to challenge established conventional theories. The idea is to think about what is wrong on contemporary economic thinking. Luckily not everything, but as Nicolas Boileau wrote in L'Art Poetique (1674):
Hâtez-vous lentement, et sans perdre courage,
Vingt fois sur le métier remettez votre ouvrage,
Polissez-le sans cesse, et le repolissez,
Ajoutez quelquefois, et souvent effacez
As part of the types of reflexions that INET is conducting, one direction is about how to model the way agents form their expectations. One of the sessions in parti...