Abstract:
This paper reviews 80 years of cooperation among central banks. Diverse modes of
collaboration are identified, ranging from simple exchange of relevant
information to mutual financial support and coordination of monetary actions.
Central bank cooperation got off to a rocky start in the 1930s, following the
creation of the Bank for International Settlements in 1930, but it improved in
the 1950s and especially in the 1960s. Most early cooperation was among
European central banks, although need for a trans-Atlantic dimension was soon
evident. By the end of the 20th century both the problems addressed and the
participants were drawn from around the world. The alleged dangers of central
bank cooperation are found to have been exaggerated.
Keywords: central banking, international economic cooperation, monetary policy,
exchange rates, Federal Reserve