Law of International Monetary Policy Coordination

International monetary policy coordination brings one’s focus to the International Monetary Fund (IMF), tasked with promoting “international monetary cooperation”. Our perceptions lead us towards imaging central bankers debating and formulating rules of monetary engagement among nations. There is certainly much truth in such a vision, however, it is only half the story. Indeed, the IMF has been central in facilitating monetary relations among nations, while providing both meaning and structure to the IMF agreement. Central banks continue the prime actors in monetary coordination. However, neither the IMF nor central banks represent the only institutional setting or actors through which coordination of monetary policy occurs. Several other institutions, both formal and informal, old and new, are playing an important role in monetary policy coordination. Given the inextricable relationship between money, investment and trade, various international regimes contribute towards coordinating monetary policy measures. Depending on the structure and objectives of particular institutions, they engage different actors, divergent instruments and exert varying levels of influence on domestic monetary autonomy.

Against that backdrop, the first task of this project is to conceptualize the law on monetary policy coordination by identifying those institutions, forums and mechanisms through which such coordination transpires in the international realm. By studying their legal form and content this work contributes to a holistic understanding of global governance in monetary affairs, which has hitherto remained under-explored in legal scholarship. In a second step, through a public law approach, this project identifies the authority embedded in international monetary coordination and address its accountability and legitimacy.