International monetary policy coordination and financial market integration
By: Alan Sutherland.
Series: International finance discussion papers ;; no. 751; International finance discussion papers (Online) ;; no. 751.
Publisher: Federal Reserve Board
Published: 2002
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "The welfare gains from international coordination of monetary policy are analysed in a two-country model with sticky prices.  The gains from coordination are compared under two alternative structures for financial markets: financial autarky and risk sharing.  The welfare gains from coordination 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 coordination are almost zero.  It is also shown that the welfare gain from risk sharing can be negative when monetary policy is uncoordinated"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 10/7/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.