Abstract:
Based on a two-country game theory model, this paper conducted research on the impact and effectiveness of monetary policy coordination among large open economies with different spill-over effects. The paper finds that when policies are coordinated, there is an improvement in total welfare compared with the scenario when there is no monetary policy coordination. In this context, monetary policies international coordination shows the following characteristics: when making monetary policy decisions, monetary authorities of large open economies will consider the externalities of other large open economies’ monetary policies on domestic economy, under the perspective of global optimization.
孙国峰, 尹航, 柴航. 全局最优视角下的货币政策国际协调[J]. 金融研究, 2017, 441(3): 54-71.
SUN Guofeng, YIN Hang, CHAI Hang. MonetaryPolicy International Coordination under the Perspective of Global Optimization. Journal of Financial Research, 2017, 441(3): 54-71.
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