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Money and Banking: What Everyone Should Know - Free Video Lecture on Monetary Policy Coordination
Taught by Professor Michael K. Salemi, University of North Carolina at Chapel Hill, Ph.D., University of Minnesota–Minneapolis
Why do international exchange rates, interest rates, and other economic indicators fluctuate? Can they be controlled? Can we even make sense of why these fluctuations in our nation’s—and the world’s—economies occur?
Among other factors, stability or instability in the global economy can be tied to the coordination—or lack of it—between central banks around the world. In our interconnected world in which no single economy, including that of the United States, is large enough or important enough to make monetary decisions without risking negative repercussions on other economies, coordination of monetary policy is essential.
But while coordination by the world’s central banks produces markedly better results than if those banks act unilaterally, this does not always occur. Central bankers may disagree about the importance of various monetary objectives, the actions needed to attain them, and, especially, the timing of corrective action. But the very key to coordination is for banks to simultaneously implement policy to lessen the risks of inflation, recession, changes in exchange rates, or other unfortunate results that can cause much harm to individuals and nations alike.
In Monetary Policy Coordination, you’ll learn
- the repercussions that lack of coordination by the central banks can touch off;
- the tradeoffs involved in decisions by central banks;
- the critical role of the International Monetary Fund in coordinating responses to financial crises,
- the importance of confidence in the global financial system;
- and much more.
Watch Monetary Policy Coordination to witness the role of the central banks as well as the International Monetary Fund in protecting global monetary health.
Monetary Policy Coordination is delivered by Dr. Michael K. Salemi, Professor of Economics at The University of North Carolina at Chapel Hill. Professor Salemi has received numerous teaching awards from UNC–Chapel Hill, as well as being recognized nationally with the Bower Medal in Economic Education from the Council for Economic Education and the Villard Award for Research in Economic Education from the National Association of Economic Educators. The Gus A. Stavros Center named him a Great Teacher in Economics in 2007.