Policy coordination does not mean, of course, that all central banks need to adopt the same policy stance for the entire world and certainly it cannot be a surrogate for domestic macroeconomic prudence nor weaken the commitment of each central bank to its institutional objective. Indeed, differences in cyclical positions, structures of the economies (e.g.
in terms of market rigidities and frictions, sectoral leverage, financial systems, etc. ), monetary policy institutional frameworks as well as shocks hitting the economy almost necessarily lead to differences in deciding the appropriate monetary policy stance. Thus, systematic monetary policy coordination may eventually come at the cost of weakening a central bank’s commitment to its institutional objective.