The Impact of International Monetary Policy Coordination on Exchange Rate Stability and Trade Balance Adjustment

Posted: May 19, 2018

• Theodore Rodriguez
• Abigail King
• Abigail Moore

Abstract

The global financial architecture has undergone significant transformations since the collapse of the Bretton Woods system, with increasing capital mobility and financial integration creating complex interdependencies among national economies. Traditional approaches to understanding international monetary policy coordination have relied heavily on game-theoretic frameworks and linear econometric models, which often fail to capture the non-linear dynamics and emergent behaviors that characterize real-world policy interactions. This paper introduces a novel computational methodology that represents a paradigm shift in how we analyze the effects of monetary policy coordination on exchange rate stability and trade balance adjustment. Our research addresses a critical gap in the literature by developing a