Monetary cooperation during global inflation surges

dc.contributor.author Fornaro, Luca
dc.contributor.author Romei, Federica
dc.date.accessioned 2025-01-16T10:03:07Z
dc.date.available 2025-01-16T10:03:07Z
dc.date.issued 2024-12
dc.description Versió actualitzada de: Monetary policy in an unbalanced global economy
dc.description.abstract We study optimal monetary policy during times of global scarcity of tradable goods. The optimal monetary response entails a surge in inflation, which helps rebalance production towards the tradable sector. While the inflation costs are fully bore domestically, however, the gains in terms of higher supply of tradable goods partly spill over to the rest of the world. National central banks may thus fall into a coordination trap, and implement an excessively tight monetary policy causing an unnecessarily sharp global contraction.
dc.identifier.uri http://hdl.handle.net/10230/69146
dc.language eng
dc.language.iso eng
dc.rights.accessRights info:eu-repo/semantics/openAccess
dc.subject.keyword Global inflationen
dc.subject.keyword Capital flowsen
dc.subject.keyword Sectoral reallocationen
dc.subject.keyword International monetary cooperationen
dc.subject.keyword Global supply shortagesen
dc.subject.keyword Competitive exchange rate appreciationsen
dc.subject.keyword Trade imbalancesen
dc.title Monetary cooperation during global inflation surges
dc.type info:eu-repo/semantics/workingPaper

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