° 2008 - 02 Inflation targeting drawbacks in the absence of a ' natural ' anchor
نویسنده
چکیده
The economic performances of the Eurozone look weaker than those of the United States over the period 1999-2006, in spite of the fact that the former applies more thoroughly the 'new macroeconomics' governance rules concerning public deficits and inflation control. The literature emphasizes Alan Greenspan's pragmatism when discussing the relative success of the 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 on the advantage of monetary policy pragmatism in the face of Keynesian uncertainty. More specifically, it points out the trials of the 'new macroeconomics' principles of monetary policy when they are implemented in a Keynesian context, that is, within a system which does not have any 'natural' anchor. JEL classification: E12, E52, E63, F42
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