Citation

Discussion Paper Details

Please find the details for DP1180 in an easy to copy and paste format below:

Full Details

Title: Designing Institutions for International Monetary Policy Coordination

Author(s): Atilano Jorge Padilla

Publication Date: May 1995

Keyword(s): Coordination, EMU, Institutions, Majority Voting, Mechanism Design, Monetary Unions, Open Economy and Strategic Conflict

Programme Area(s): International Macroeconomics

Abstract: In this paper we study the adjustment of a N-country world economy to an unfavourable common supply shock. We show that world-wide monetary policy coordination is essential to achieve an optimal adjustment to the common shock, but that its actual implementation requires careful design to ensure that each country finds it optimal to join and to remain faithful to the coordination agreement. We then construct alternative coordination mechanisms which implement the first-best response to the common shock, discuss their main properties and rank them according to different criteria of desirability.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1180

Bibliographic Reference

Padilla, A. 1995. 'Designing Institutions for International Monetary Policy Coordination'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1180