An International Monetary Policy Committee accountable to world leaders, that is what the Committee on International Economic and Policy Reform proposes in its report Rethinking Central Banking.
This International MPC sould comprise representatives of major central banks and report on the aggregate consequences of individual central banks policies. According to the Committee this would encourage large-country central banks to internalize the spillover effects of their policies.
The Committee also propose that central banks should go beyond their traditional focus on inflation fighting and adopt an explicit financial stability objective; macroprudential policy should be used alongside monetary policy in pursuit of this 'new' objective.
The Committtee's report can be downloaded from the Brookings Institution website.
