Jean Castex is not the only one to go to meet the territories. The governor of the Banque de France, François Villeroy de Galhau, also wants to listen to the French. The French central bank plans to organize, in the first half of 2021, under the conditions that Covid-19 will allow, around fifteen meetings in the provinces and in Paris, including one aimed at a young audience, high school students and students. To what end?
The governor explained this Friday in a speech – on video – at the Official Forum of Monetary and Financial Institutions. “Our communication is too often directed to a small group of people: the media, the markets and economists“, He admitted, once again. “It’s not just a question of democratic accountability, continues François Villeroy de Galhau. It is also fundamental to our economic efficiency. ” Households, through their daily life, generally perceive inflation as much higher than the index measured by INSEE (0.2% in August).
This gap hinders the effective transmission of monetary policy to businesses and consumers. For example, the Banque de France is considering including owner-occupant charges in the price index, as the US Fed is doing. This consultation with the general public is part of the strategic review of the European Central Bank (ECB), which could lead it, at the end of 2021, to relax its inflation target and review its priorities.