Politique economique: avon-nous appris? = Economic policy: what have we learned? Bruegel Third-Party Paper, May 2008

Pisani-Ferry, Jean. (2008) Politique economique: avon-nous appris? = Economic policy: what have we learned? Bruegel Third-Party Paper, May 2008.

Abstract

This paper examines what economic policy has learned from the contemporary developments in economic research and which lessons have been drawn from them for the formulation and the implementation of French economic policy. Advances in research are grouped under three headings: the intertemporal character of private behaviour and public policies; imperfect information and its implications for policy; and political economy constraints. Next, the paper reviews three main innovations through which economic policy has adapted to this change in perspective: the independent institution; the flexible rule; and the incentive contract. The implementation of those innovations in France is compared to international experience in the fields of monetary policy, fiscal policy and public management. Finally, the paper discusses what France has been slow to adopt and implement those innovations.