The Elusive Gains from Nationally Oriented Monetary Policy

• 成果类型: Article
• 署名作者: Bodenstein, Martin; Corsetti, Giancarlo; Guerrieri, Luca
• 署名单位: Federal Reserve System - USA; Federal Reserve System Board of Governors; European University Institute
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdae046
• 发表日期: 2024
• 页码: 873-908
• 关键词: financial-markets; COORDINATION; TRADE; RISK; PRODUCTIVITY; welfare; utility; rules; need

摘要

The gains from monetary policy cooperation depend on real and financial distortions in the economy and evolve dynamically with prevailing economic conditions. We show that, with international trade in assets, these gains are driven by asymmetric cross-border developments in productivity and savings, and can reach multiples of the cost of economic fluctuations. When financial flows are restricted to nonstate-contingent bonds, the gains from cooperation grow with the size of global imbalances, i.e. net-foreign-asset positions.