How common is coordination or cooperation between central banks across different countries?
Banking
Asked by Question Bot04/Aug/20151 answer
1 Answer
F
Faisal Khan
Answered 04/Aug/2015
Difficult question to answer. If someone were to go back in time and cite at examples of collusion in the early history of banking and how things are/were done, one might be labelled as a conspiracy theorist.
The truth of the matter is, people down in the lower echelons will never know. If there is collusion it would be well disguised or innocently disguised, as policy meeting of G5, G7 or G20, IMF, WB, etc.
One never knows.
For purposes of argument, it is bound to happen. When banks are holding on to each other's currency in their ledgers, positions taken by a single entity do affect others. There has to be some form of understanding how policy making will fan out to other partners (central) banks.
The truth of the matter is, people down in the lower echelons will never know. If there is collusion it would be well disguised or innocently disguised, as policy meeting of G5, G7 or G20, IMF, WB, etc.
One never knows.
For purposes of argument, it is bound to happen. When banks are holding on to each other's currency in their ledgers, positions taken by a single entity do affect others. There has to be some form of understanding how policy making will fan out to other partners (central) banks.