01895cas a2200241 a 4500 AALejournalIMF008552 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451841664 1018-5941 BD-DhAAL BD-DhAAL Tchakarov, Ivan. The Gains From International Monetary Cooperation Revisited / Ivan Tchakarov. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the issue of whether countries can improve their welfare by coordinating macroeconomic policies. The main purpose is to compute the gains from international monetary cooperation as the difference between the steady state consumption levels associated with the Nash and the cooperative outcomes of the game in which monetary authorities pursue active monetary policy. A numerical second-order approximation makes the solution of the model possible. Contrary to Obstfeld and Rogoff (2002), who claim that the gains from international cooperation in monetary policy are negligible, the paper finds that they could be very significant and reach as high as 2.2 percent of steady state consumption. This suggests that individual countries could experience significant welfare losses if they concentrate only on domestic stabilization policies. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2004/001 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/001/001.2004.issue-001-en.xml IMF e-Library