The global aspects of the policy mix Starting with the global aspects of the policy mix, let me say from the outset that I belong to the “sceptical” school and see limited scope for, and advantages to formal monetary policy coordination at a global level. It is quite clear that there are qualitative benefits to coordination, due to cross-border spillovers.
Moreover, those benefits are likely to be higher in crisis situations as coordinated actions provide signals that are significantly stronger than the sum of uncoordinated individual measures. But coordination tends to happen anyway in such instances, as the direction of the necessary policy action is strongly positively correlated across countries, and all actors have a shared interest in removing unwelcome tail risks.