The central bank’s objective must be tailored to the economic priorities of the time

Instead of having an economic objective defined once and for all, central banks should have an objective defined to suit the economic priorities of the time: In the late 1970s and in the 1980s, the main problem was inflation. It was then that central banks adopted inflation targeting; In the 2000s and 2010s, even though central banks still had inflation targets, in reality low inflation led them to define other objectives: support employment and potential growth, reduce inequality, reduce financial in stability (in theory, although not in practice); What should central banks do today? The situation is complicated: Inflation is returning, which could justify a return to pure inflation targeting; But there is also a need to support the energy transition, which requires keeping interest rates low. There is a clear conflict of objectives for monetary polic y : combat inflation or support the energy transition?