EconPapers    
Economics at your fingertips  
 

International monetary policy coordination and financial market integration

Alan Sutherland ()

No 174, Working Paper Series from European Central Bank

Abstract: The welfare gains from international co-ordination of monetary policy are analysed in a two-country model with sticky prices. The gains from co-ordination are compared under two alternative structures for financial markets: financial autarky and risk sharing. The welfare gains from co-ordination are found to be largest when there is risk sharing and the elasticity of substitution between home and foreign goods is greater than unity. When there is no risk sharing the gains to co-ordination are almost zero. It is also shown that the welfare gain from risk sharing can be negative when monetary policy is uncoordinated. JEL Classification: E52, E58, F42

Keywords: financial integration; monetary policy coordination; risk sharing (search for similar items in EconPapers)
Date: 2002-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp174.pdf (application/pdf)

Related works:
Working Paper: International Monetary Policy Coordination and Financial Market Integration (2004) Downloads
Working Paper: International monetary policy coordination and financial market integration (2002) Downloads
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:ecb:ecbwps:2002174

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().

 
Page updated 2025-03-31
Handle: RePEc:ecb:ecbwps:2002174