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Monetary policy independence under flexible exchange rates : the Federal Reserve and monetary policy in Latin America : is there policy "spillover"? / Sebastian Edwards -- The international impact of the Fed when the United States is a banker to the world / David Beckworth and Christopher Crowe...
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the paper. Using a simple 7 country model -- consisting of Canada, France, Germany, Italy,Japan, the United Kingdom, and … inflation in each country are calculated. The cooperative policies are computed using standard dynamic stochastic programming … the cooperative policy rules for these countries are more accommodative to inflation than the non-cooperative policy rules …
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Research in the early 1980s found that the gains from international coordination of monetary policy were quantitatively small compared to simply getting domestic policy right. That prediction turned out to be a pretty good description of monetary policy in the 1980s, 1990s, and until recently....
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