International Monetary Policy Cooperation

2005. “The Euro at Five: Short-run Pain, Long-run Gain?” Journal of Policy Modeling 27 (4): 441-443. JPM; Abstract

The euro has had some marked successes over its first five years included the marked deepening of euro bond markets which has benefited the entire world. But at the same time, the pain has probably outweighed the gain as Europe still remains far from an optimal currency area.

2004. “U S Imbalances and the Euro's Outlook.” Cato Journal 24 (1-2): 41-43. Cato Journal
Obstfeld, Maurice, and Kenneth Rogoff. 2002. “Global Implications of Self-Oriented National Monetary Rules.” Quarterly Journal of Economics 117: 503-36. Abstract

In recent years, many countries have instituted monetary reforms aimed at improving anti-inflation credibility. Is it a problem, however, that international welfare spillover effects seldom receive much consideration in the design of monetary reforms? Surprisingly, the answer may be no. Under plausible conditions, as domestic rules improve and international financial markets become more complete, the Nash and cooperative monetary rule setting games converge. We base our analysis on a utility-theoretic sticky-wage (new open economy macroeconomics) model; the question we pose simply could not have been adequately formulated using earlier models of monetary cooperation.

Rogoff, Kenneth. 2001. “Why Not a Global Currency.” American Economic Review 91: 243-47.
Rogoff, Kenneth. 1993. “Achieving Exchange Rate Stability in a Tri-Polar World: A Target Zone System with a Rotating Anchor.” Price Stabilization in the 1990s, edited by Kumiharu Shigehara. London: McMillan Press.
Froot, Kenneth, Kenneth Rogoff, Olivier Blanchard, and Stanley Fischer. 1991. “The EMS, the EMU, and the Transition to a Common Currency.” NBER Macroeconomics Annual 6, 269-317. NBER. NBER volume;

The evidence presented here suggests that European Monetary System has indeed coincided with more predictable exchange rates (nominal and real) between France, Germany and Italy. But if increased monetary policy coordination is the main explanation, then it is surprising that the conditional variance of real interest differentials between these countries does not appear to have fallen (unless the disturbances are mostly real, in which case fixed rates are suboptimal). High onshore-offshore interest differentials for franc and lira assets, and the very slow convergence of intra-EMS inflation rates, suggest that capital controls have played a large role.

Rogoff, Kenneth. 1985. “Can International Monetary Cooperation be Counterproductive.” Journal of International Economics 18: 199-217.