Third, at a time when policy space for demand policies is limited or exhausted, and when global policymakers are concerned about the risk of secular stagnation, supply-side policies come to the forefront. But coordination is difficult on structural reforms, which are different across countries.
From coordination to cooperation In short, there are various political economy aspects to international policy coordination which are often not covered in simple models, and which bolster the case for leaving formal arrangements as they are. But this does not mean that central banks should not continue to cooperate in ways that add stability to the international economy.