Is International Monetary Policy Coordination Feasible For The Asean-5 + 3 Countries?

Authors

Eric Alexander Sugandi, Asian Development Bank InstituteFollow

Document Type

Article

Abstract

We examine the feasibility of international monetary policy coordination among the ASEAN-5 + 3 countries using the two-production-factor Dynamic Stochastic General Equilibrium (DGSE) models. It explores three types of interaction regimes among these countries: (1) No Coordination; (2) Bilateral Coordination; and (3) Multilateral Coordination. We find 18 feasible Bilateral Coordination schemes and four feasible Multilateral Coordination schemes for the ASEAN-5 + 3 countries. The best among these schemes is the Multilateral Coordination scheme that involves all the ASEAN-5 + 3 countries. Therefore, we suggest that the ASEAN-5 + 3 countries should adopt this scheme if coordinating monetary policies.

Recommended Citation

Sugandi, Eric Alexander (2022) "Is International Monetary Policy Coordination Feasible For The Asean-5 + 3 Countries?," Bulletin of Monetary Economics and Banking: Vol. 25: No. 4, Article 2.
DOI: https://doi.org/10.21098/bemp.v25i4.1444
Available at: https://bulletin.bmeb-bi.org/bmeb/vol25/iss4/2

First Page

531

Last Page

574

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Tokyo

Affiliation

Asian Development Bank Institute