Financial integration generates macroeconomic spillovers that may require international monetary policy coordination. We show that individual central banks may set nominal interest rates too low or too high relative to the cooperative outcome. We identify three sufficient statistics that...

""Cover""; ""Title""; ""Copyright""; ""Contents""; ""List of illustrations ""; ""Foreword""; ""Preface""; ""Acknowledgements ""; ""List of abbreviations ""; ""Executive Summary ""; ""Introduction ""; ""1 Economic Outlook and Prospects ""; ""2 Trends and Patterns of Merchandise Trade ""; ""3...