Old macroeconomic premises must be abandoned

A number of macroeconomic mechanisms that seemed well-established and sound no longer seem to be present at all in OECD countries: Falling unemployment no longer brings back inflation; Rapid money creation no longer drives up prices; Exchange rate depreciation no longer stimulates growth; Very low interest rates no longer reduce excess savings over investment; Fiscal deficits no longer drive up interest rates (no longer generate a crowding-out effect). The disappearance of these mechanisms, which we are able to explain, profoundly changes the analysis of monetary policies.