Cross-Border Connections In Central Banking

After the global financial crisis outbreak, there are intensified debates on the cross-border spillovers effects induced by unconventional monetary policy of major central banks in developed countries. Based on this observation, the present paper makes a short analysis on the relationship between central banks in post-crisis time, focused on the connection between major central banks (Fed, ECB) and other central banks of local (i.e. national) interest. For an open economy, the central bank's responsibility in promoting the financial stability extends beyond the national borders, becoming a regional or even a global responsibility. At the global level, a great challenge remains the way in which the cooperation between monetary authorities can be strengthened, even in normal times. The major locally-driven effects generated by the global central banks decisions requires further exploration of new areas of cooperation that can limit the accumulation of financial imbalances and vulnerabilities in the economy.