International Dimensions of Monetary Policy
Jordi Gali and Mark Gertler
Abstract
United States monetary policy has traditionally been modeled under the assumption that the domestic economy is immune to international factors and exogenous shocks. Such an assumption is increasingly unrealistic in the age of integrated capital markets, tightened links between national economies, and reduced trading costs. This book brings together fresh research to address the repercussions of the continuing evolution toward globalization for the conduct of monetary policy. In this book, the chapters examine the real and potential effects of increased openness and exposure to international ec ... More
United States monetary policy has traditionally been modeled under the assumption that the domestic economy is immune to international factors and exogenous shocks. Such an assumption is increasingly unrealistic in the age of integrated capital markets, tightened links between national economies, and reduced trading costs. This book brings together fresh research to address the repercussions of the continuing evolution toward globalization for the conduct of monetary policy. In this book, the chapters examine the real and potential effects of increased openness and exposure to international economic dynamics from a variety of perspectives. Their findings reveal that central banks continue to influence decisively domestic economic outcomes—even inflation—suggesting that international factors may have a limited role in national performance.
Keywords:
globalization,
monetary policy,
inflation,
central banks,
exogenous shocks,
domestic economy
Bibliographic Information
| Print publication date: 2010 |
Print ISBN-13: 9780226278865 |
| Published to Chicago Scholarship Online: February 2013 |
DOI:10.7208/chicago/9780226278872.001.0001 |
