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Abstract: Based on a two-country Stackelberg game theory model, this paper conducted research on the impact and effectiveness of monetary policy coordination among large open economies with different spill-over effects. The paper finds that when policies are coordinated, there is an improvement in total welfare compared with the scenario when there is no monetary policy coordination.

Full report ：WP No.2016/10 Monetary Policy Coordination from the Perspective of Global Optimization.pdf