In a post earlier this year, I argued that monetary policy in the major OECD economies is better viewed as a global process than a set of purely national decisions. Central banks tend to shift policy in the same direction at roughly the same time because they face broadly similar shocks. The key point is that foreign central banks’ policy decisions show where interest rates are likely to go also at home. They are not just background noise. In this post I return to that theme, looking at ten central banks from 2000 to 2025 (Australia, Canada, Denmark, the euro area, Norway, New Zealand, Sweden, Switzerland, the UK and ... (full story)