6 As recently argued by Charles Engel, research on monetary policy coordination is too scarce to draw any firm conclusions 7. In particular, it is not clear whether the optimal noncooperative policy leads to more spillovers than would occur under a cooperative policy.
In addition, examples of successful co-ordination in the real world are few and limited to exceptional crisis times as documented in an IMF study by Ostry and Gosh (2013) 8, quite apart from the political and institutional obstacles to such co-ordination, starting with the fact that central banks have domestic, not global mandates.