Ellison, Martin; Sarno, Lucio; Vilmunen, Jouko - Society for Computational Economics - SCE - 2006
We examine optimal policy in an open-economy model with uncertainty and learning, where monetary policy actions affect … policy depends on whether central banks are in coordinated or uncoordinated equilibrium. If central banks coordinate their … caution is optimal because it helps central banks to avoid exposing themselves to manipulative actions by other central banks …