The future of central bank cooperation
By: by Beth A Simmons
Contributors: Bank for International Settlements. Monetary and Economic Department
Series: BIS working papers -- no. 200; BIS working papers (Online) -- no. 200.
Publisher: Bank for International Settlements
Published: 2006
Place of publication: Basel, Switzerland
Language: eng
Format: [electronic resource] /
Description: Central bank cooperation depends on a few crucial parameters: the extent to which central bankers agree on theory (end means relationships); the extent to which they can agree on goals (social purpose); the capacity (technical and institutional) to achieve their collective goals; and whether the broader political environment facilitates or impedes cooperation. This article explores these questions by first providing an overview of central banks and bankers. Among the G-10 countries, central bankers are likely to share political independence, relatively long term horizons, and (increasingly) academic backgrounds. These conditions may be conducive to high levels of cooperation in the future. Second, I explore the "easiest" form of cooperation -- information sharing -- and conclude that this is an area in which central bank cooperation will become increasingly routinised. Cooperation to address global financial stability is a more difficult cooperative dilemma, with tensions between the need for efficient regulatory management and the inclusion of a broader range of cooperating institutions. In the area of exchange rate and monetary policy coordination, consensus among the major exchange rate authorities regarding the effectiveness of coordinated exchange market interventions has withered, though this does not preclude a new consensus from emerging in the future. One of the most significant challenges to central bank cooperation in the future will be how to include rising monetary and financial powers, particularly China, into the cooperative management of international monetary conditions.
Notes: Title from PDF file (viewed on May 31, 2006).

"Monetary and Economic Department."

"February 2006."

Includes bibliographical references.

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