central banks' monetary policy must be credible if the authorities want to curb inflation. A second view is that central banks … set their monetary policy by using all the information relevant for inflation and output projections. In Europe, a … controversy has emerged about the role of monetary aggregates as useful indicators of future inflation and output. On one hand …

with the supply-side effects of fiscal taxes variations. As concerns policy responses to inherited unemployment, the … and to enforce adverse interactions, especially in contexts of high unemployment. However, provided authorities are able …

drawbacks when implemented in Keynesian non-ergodic regimes. As long as Keynesian unemployment is interpreted in terms of …) of what New Keynesians have referred to as unemployment hysteresis. However, difficulties do not vanish when authorities …

stationary regimes, may cause severedysfunctions, such as depressive macroeconomic policies and unemployment traps, in non … inflation restson a consensual distribution of income. Second, authorities should abandon any "optimal rule"designed in order to …

, unless a new assets bubble is allowed for. Authorities could therefore be facing high unemployment in a damaged context of … public deficits and inflationary pressures. The paper aims at discussing these new challenges. The inadequacy of inflation …