I attended recently a lecture from an economic professor of ScPo Lyon in Université Jean Moulin LYON 3 organized by an association of students in political science. The lecture was very passionnating. It answered to a major wondering for me. Indeed, while reading the rules of the ECB, I noticed that the most important aim of EU monetary policy was to get an inflation rate close to but below 2% per year. Unemployment, growth are secondary objectives that can be completed only when the inflation targeted rate is reached.
So, I was wondering whether this choice of inflation rate only targeting has been a constant in monetary policy theory or does it reflect a special way, a special paradigm of monetary policy theory ?
Actually, yes it does ! To have only one target (inflation rate) is a specific way to do monetary policy. Friedman was the main theorist of monetary policy and the lecturer gave us three revision to orthodox monetary policy theory. I printed each article and started studying them.
Please find enclosed a few documents I gathered right after the lecture I attended in Lyon.