considers that spillover effects from larger countries ’ monetary policy via the global financial markets are a problem, how can one resolve it? one possibility, at least on paper, would be for central banks around the world to coordinate their policy. i am personally not particularly optimistic about the possibilities or the usefulness of trying to achieve an international coordination of monetary policy in any more formal sense. ultimately, the national central banks have the task of fulfilling mandates that are determined see, for example, rajan ( 2014 ). see rey ( 2013 ). see rey ( 2013 ). see kamin ( 2010 ) for a compilation of the empirical research into the effects of globalisation on monetary policy. bis central bankers ’ speeches nationally, and if they were to try to take into account the spillover effects of their policy abroad, this would mean having to set aside the national objectives, at least temporarily. it would probably be difficult to get the domestic support and understanding that is ultimately needed for such a policy. it would moreover probably be difficult to both estimate and reach agreement internationally on the size of the effects – different countries will most likely have different opinions. 31 having said this, i believe there are good reasons to take global aspects into account in models and monetary policy analyses, to a greater extent than is the case today – spillover – and feedback effects that individual countries ’ monetary policy may lead to. just as the financial crisis started a research agenda on how financial conditions should be included in macro models to a greater extent, i believe that the increased globalisation will create a need for further development work with regard to the analysis of monetary policy in open economies. but it remains to be seen how far this will lead and whether it will have an impact on the practical policy, and if so, how large an impact. in any case, i believe that the financial globalisation and the way it affects the conditions for monetary policy, including coordination with macroprudential policy, is a question that will continue to be discussed intensively in coming years. as an important problem is that exaggerated credit growth can arise in the countries to which capital flows, financial stability can hopefully be guaranteed by the frameworks for macroprudential policy that are now being built up. 32 we will see how well these frameworks can resist the global forces in the “ learning by doing ” process we are facing in the macroprudential policy area. a more complicated world after the crisis let me try to summarise. the fact

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