HAL will be down for maintenance from Friday, June 10 at 4pm through Monday, June 13 at 9am. More information
Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Monetary theory and policy : the debate revisited

Abstract : This paper is aimed at revisiting monetary analysis in order to better understand erroneous choices in the conduct of monetary policy. According to the prevailing consensus, the market economy is intrinsically stable and is upset only by poor behaviour by government or the banking system. We maintain on the contrary that the economy is unstable and that achieving stability requires a discretionary economic policy. This position relies upon an analytical approach in which monetary and financial organisations are devices that help markets to function. In this perspective, which focuses on the heterogeneity of markets and agents, and, consequently, on the role of institutions in determining overall performance, it turns out that nominal rigidities and financial commitment offer the means to achieve economic stability. This is because they prevent successive, unavoidable disequilibria from becoming explosive.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

https://hal-sciencespo.archives-ouvertes.fr/hal-03475425
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Friday, December 10, 2021 - 9:35:15 PM
Last modification on : Friday, March 25, 2022 - 3:58:40 AM

File

2018-40-monetary-theory-and-po...
Publisher files allowed on an open archive

Identifiers

Collections

Citation

Jean-Luc Gaffard. Monetary theory and policy : the debate revisited. 2018. ⟨hal-03475425⟩

Share

Metrics

Record views

0

Files downloads

9