Comment on: "The International Spillovers of Synchronous Monetary Tightening"by Dario Caldara, Francesco Ferrante, Matteo Iacoviello, Andrea Prestipino, and Albert Queralto

Ever since Rogoff, 1985, international policy cooperation has been considered particularly counterproductive in periods of disinflation-the argument being that cross-border agreement aiming to moderate the global recessionary effects of monetary policy would erode the credibility of domestic monetary authorities in the eyes of domestic workers and firms. The paper by Caldara et al. offers a timely and healthy warning-cross-border spillovers of monetary tightening may be highly non linear: The cumulative effects of strongly anti-inflationary stance in many countries may worsen the trade off faced by each national monetary authority.