International monetary policy surprise spillovers

International Great Inflation and Common Monetary Policy∗

The Great Inflation of the 1970s was an international phenomenon. We study whether monetary authorities in the G7 countries were changing their responses to inflation in a similar manner during and following the Great Inflation era. Our results suggest that the common to the G7 countries inflation pattern during the Great Inflation period is associated with a common pattern in the monetary poli...

International Experiences with Different Monetary Policy Regimes

This paper examines the international experiences with four basic types of monetary policy regimes: 1) exchange-rate targeting, 2) monetary targeting, 3) inflation targeting, and 4) monetary policy with an implicit but not an explicit nominal anchor. The basic theme that emerges from this analysis is that transparency and accountability are crucial to constraining discretionary monetary policy ...

International Aspects of Current Monetary Policy

Competing coalitions in international monetary policy games

In Kohler (2002) we analyse coalition formation in monetary policy coordination games between n countries. We find that positive spillovers of the coalition formation process and the resulting free-rider problem limit the stable coalition size: since the coalition members are bound by the union’s discipline, an outsider can successfully export inflation without fearing that the insiders will tr...

Monetary Exit Strategy and Fiscal Spillovers

The aftermath of the global financial crisis has seen two types of concerns in regards to monetary policy outcomes. Some (eg Paul Krugman or Brad De Long) worry primarily about the short-term possibility of deflation caused by a prolonged slump. In contrast, others (eg Greg Mankiw or John Taylor) worry more about excessively high inflation in the longer-term caused by recent bailouts/quantitati...