This paper examines the problem of monetary coordination building on an international sticky-price model. I demonstrate that monetary coordination is associated with a welfare transfer of 0.56%--0.57% of steady-state consumption from the high-openness economy to the low-openness economy. By...

Countries have historically welcomed foreign capital and have implemented policies to facilitate and encourage its inflow. However, the recent surge of FDI from economies characterised by large state interventionism has raised concerns for national security and economic stability, leading to...