November 19, 2021 Perspectives on Global Monetary Policy Coordination, Cooperation, and Correlation Vice Chair Richard H. Clarida At the "Macroeconomic Policy and Global Economic Recovery" 2021 Asia Economic Policy Conference, sponsored by the Federal Reserve Bank of San Francisco Center for Pacific Basin Studies, San Francisco, California (via webcast) Share Watch Live In my remarks today, I would like to offer some perspectives on global monetary policy correlation and what it canâ€”and cannotâ€”reveal about the prevalence and value of global monetary policy coordination or, in the limit, binding global monetary cooperation.1 In both the Global Financial Crisis (GFC) and the Global Pandemic Collapse (GPC), major central banks around the world responded by cutting policy rates to, and then keeping them at, their effective lower bounds (ELBs); by increasing their balance sheets through ambitious and expansive large-scale asset purchase and lending programs; and by offering forward guidanceâ€”both Delphic and Odysseanâ€”on the stance of their future monetary policies.2 As these examples make clear, we certainly do observe that national monetary policies are often correlated, and such examples are not confined to recent experience.