Should Central Banks’ Mandate Be Revised?

In most developed countries, the mission of central banks is essentially to ensure the stability of prices and financial systems. The reality, however, is somewhat more complex: the Fed has a dual mandate, while the ECB is expected to support the European Union's multiple economic objectives. Recently, several of these institutions have taken initiatives to “green” their policies. But in the face of the large-scale shocks to our economies, shouldn't they go further by reviewing the priorities of their missions? Responding to the challenges of financing massive investments in an uncertain environment could lead them to adopt new instruments of action. But above all, this should lead them to revise their operational objectives, and in particular the definition of their inflation targets (their level, the margin of tolerance, the calculation horizon, etc.). On the other hand, the handling of recent crises has revealed friction between monetary and fiscal policies. It has become crucial to formalize the necessary coordination between them. This would give them degrees of freedom, if at least it does not call into question their independence.