Coenen, Günter; Lombardo, Giovanni; Smets, Frank; … - 2008
We use a version of the New Area-Wide Model (NAWM) developed at the ECB in order to quantify the gains from monetary … policy cooperation. The model is calibrated in order to match a set of empirical moments. We then derive the cooperative and … (open-loop) Nash monetary policies, assuming that the central banks' objectives is to maximize the welfare of the households …