Abstract
We examine whether there is a case for coordinating monetary policy reactions across major economies. We undertake stochastic simulations on the National Institute's Global Econometric Model (NiGEM), to evaluate independently set monetary policy where domestic considerations remain the prime objective and we compare outcomes to a regime with a coordinated policy where domestic interest rates react to international conditions. We also demonstrate the asymptotic properties of the stochastic simulations and stress the robustness of our results.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.