Joint rate moves have little benefit

The gains from monetary policy coordination in the United States and the eurozone are small, research published by the European Central Bank finds.

Using a version of the New Wide Area Model, the research derives the cooperative and Nash monetary policies assuming that the central banks' objective is to maximise household welfare. Given the current degree of openness of the United States and the euro-area, the research finds the gains from coordination are small.

However, the gains appear

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