Central banks unite Policy coordination is crucial – Minneapolis Fed paper

TLDR: Central banks should coordinate their monetary policies to take into account the effects on other countries, according to a research paper published by the Federal Reserve Bank of Minneapolis. The authors argue that a central bank’s policy affects the ability of other central banks to achieve their output and inflation stability objectives. They suggest that policy coordination among central banks could lead to improved global economic outcomes and reduce the risk of policy spillovers. However, they note that coordination may be challenging due to differences in economic structures, objectives, and policy frameworks among countries.