International monetary policy coordination in a new Keynesian model with NICE features

Jean-Christophe Poutineau () and Gauthier Vermandel
Additional contact information
Jean-Christophe Poutineau: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper provides a static two country new Keynesian model to teach two related questions in international macroeconomics: the international transmission of unilateral monetary policy decisions and the gains coming from the coordination monetary rules. We concentrate on "normal times" and use a thoroughly graphical approach to analyze the questions at hands. In this setting monetary policy is conducted using interest rates rules and economic integration between nations does not necessarily create the case for the coordination of monetary policy. In particular, we show that the conduct of optimal national monetary policies does not make any difference with the coordination of national policies, as this creates a situation where the international monetary system operates "Near an International Cooperative Equilibrium".

Keywords: monetary policy; New Keynesian macroeconomics; international macroeconomics; economic policy; optimal interest rate rules; A20; E10; E50; F41 (search for similar items in EconPapers)
Date: 2018-04-03
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac, nep-mon and nep-opm
Note: View the original document on HAL open archive server: https://hal.science/hal-01745620v1
References: Add references at CitEc
Citations:

Published in Journal of Economic Education, 2018, 49 (2), pp.151-166. ⟨10.1080/00220485.2018.1438945⟩

Downloads: (external link)
https://hal.science/hal-01745620v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01745620

DOI: 10.1080/00220485.2018.1438945

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().