The economic choices made over the past 20 years seriously called into question

Three key economic choices made over the past 20 years are now being called into question : Free international movement of capital, associated with flexible exchange rates and monetary policies that have merely domestic objectives. We can now see that this choice leads to excessive variability of capital flows and exchange rates, in emerging countries, but also in OECD countries; Inflation targeting-type monetary policies, which have an inflation target. They are called into question because inflation in OECD countries no longer follows the economic cycle; it remains low even at full employment. This should normally force central banks to look for other monetary policy objectives; Budgetary rules, particularly in Europe, which are being called into question since, in an environment of very low real interest rates, it is possible to have higher public debt level without risk .