ABSTRACT OF PAPER
Title: The Bank of France monetary policy history in the 20th: What can we learn on the way French central bankers did (do) monetary policy ?
Author: Barbaroux Nicolas
The French monetary policymaking had always attracted a lot of comments and reactions both in Europe and overseas. Those reactions were numerous particularly during interwar periods of monetary and banking instabilities. However, quite recently, an increasing literature gave a new picture on the French monetary policymaking in the 20th century (Bazot & Bordo & Monnet 2014; Monnet, 2014; Barbaroux 2013, Friedman, 2003). The latters opens some doubt on the goal and motivations that ran Bank of France's interventions during the Gold Standard eras (both between 1880-1914 and later on such as in 1928-1971). Our approach is motivated by the major lessons inherited from Monnet et al. (2014) and Barbaroux (2013). They, demonstrated to what extent the domestic asset portfolio of the Bank of France played a crucial role in smoothing international shocks and in maintaining the stability of the discount rate particularly during the early ages of the Gold Standard era (1880-1914 and interwar period). Consequently, the article proposes to highlight the major instruments that Bank of France used to conduct -not to say manage- its monetary policy in the first half of the 20th century so as to understand the theoretical background within the Bank of France corridors. After recalling the French central bank's duties in that period (part I), the article will analyse the most effective instruments that Bank of France used (part II). The article ends by highlighting an unknown (heterodox) theory from Jacques Le Bourva. The article will conclude by supporting a different story on the Bank of France monetary policy. One of the major conclusion we reach demonstrate that Bank of France could have had some opportunities or advantages to deviate from monetary rules -or explicit regulations- so as to favour implicitly its domestic activity (or goals) at the expense of the external ones.
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