The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

International Policy Coordination

  • Paul R. Bergin
Reference work entry


Coordination among national governments as they formulate macroeconomic policies has been proposed as a response to global integration among national markets. Policy coordination may be beneficial by preventing the externalities created by policy spillovers, as well as by promoting international risk sharing. The usefulness of coordination depends upon numerous characteristics of an economy, including the degree of openness in goods and asset markets.


Asset market integration Beggar-thy-neighbour Bretton Woods system Commitment Coordinated solutions European Central Bank European Monetary Union Exchange rate targets Fiscal expansion Globalization Goods market integration Information sharing International capital flows International migration International policy coordination Keynesianism Labour market integration Microfoundations Monetary policy externalities Nash solutions Policy spillovers Risk sharing Sticky price Terms of trade 

JEL Classifications

F3 F23 
This is a preview of subscription content, log in to check access.


  1. Canzoneri, M.B., and J. Gray. 1985. Monetary policy games and the consequences of non-cooperative behavior. International Economic Review 26: 547–564.CrossRefGoogle Scholar
  2. Canzoneri, M.B., R.E. Cumby, and B.T. Diba. 2005. The need for international policy coordination: What’s old, what’s new, what’s yet to come? Journal of International Economics 66: 363–384.CrossRefGoogle Scholar
  3. Corsetti, G., and P. Pesenti. 2005. International dimensions of optimal monetary policy. Journal of Monetary Economics 52: 281–305.CrossRefGoogle Scholar
  4. Devereux, M., and C. Engel. 2003. Monetary policy in the open economy revisited: Price setting and exchange rate flexibility. Review of Economic Studies 70: 765–783.CrossRefGoogle Scholar
  5. Friedman, M. 1953. The case for flexible exchange rates. In Essays in positive economics. Chicago: University of Chicago Press.Google Scholar
  6. Hamada, K. 1974. Alternative exchange rate systems and the interdependence of monetary policies. In National monetary policies and the international financial system, ed. R. Aliber. Chicago: University of Chicago Press.Google Scholar
  7. Obstfeld, M., and K. Rogoff. 2002. Global implications of self-oriented national monetary rules. Quarterly Journal of Economics 117: 503–535.CrossRefGoogle Scholar
  8. Oudiz, G., and J. Sachs. 1984. Macroeconomics policy coordination among the industrial countries. Brookings Papers on Economic Activity 1984(1): 1–64.CrossRefGoogle Scholar
  9. Tchakarov, I. 2004. The gains from international monetary cooperation revisited, IMF working paper no. WP/04/1. Washington, DC: International Monetary Fund.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Paul R. Bergin
    • 1
  1. 1.