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Clarida Warns Of Globally Coordinated Interest Policy


Central banks in different countries can usefully share analysis and may adopt similar policies in response to common global shocks, but explicit coordination would likely do more harm than good, Federal Reserve Vice Chair Richard Clarida said on Friday.

The Fed official signaled skepticism toward adopting coordinated interest-rate policies among major central banks in remarks prepared for delivery at a conference on Friday.

“While international monetary policy coordination may enhance the efficiency of monetary policy execution, I am skeptical that in practice there are additional material, reliable, and robust gains that would flow from a formal regime of binding monetary policy cooperation,” said Clarida.

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