Furthermore, in an international macroeconomic environment of subdued and uneven growth and high unemployment, zero lower-bound interest rates and a tight fiscal policy stance, certain nations may attempt to use their monetary policies – through standard or nonstandard measures – in order to influence their exchange rate to bolster their economy and boost employment.
The question thus arises whether monetary authorities should act in a coordinated manner during this final stage in the exit from the global crisis and at a time when foreign exchange rates are not an official monetary policy objective in advanced economies.