The organisation of three economic policies

We look at how three economic policies in OECD countries are organised: wage policy, monetary policy and fiscal policy. Currently, wage policy consists in deregulating labour markets and obtaining small wage increases and low inflation, while monetary policy is trying to restore inflation. Fiscal policy must be used alone to stimulate demand, if necessary, since interest rates are permanently very low; it is, moreover, chronically expansionary; The optimal organisation would be very different; wage policy would lead to a fair income distribution between wages and profits, and, as a result, inflation would be normal; monetary policy could therefore provide normal liquidity, prevent financial imbalances and also , if needed, have countercyclical action. Fiscal policy would then be countercyclical, but helped in this role by monetary policy; it would not lead to a permanent rise in public debt. The problem is to move from the current organisation to the optimal organisation, given the required rise in wages, inflation and interest rates.