In a globalised world a country is not just impacted by its own policy but rather by policies of other nations as well. For example increase in interest rate by central bank of Germany in 1990's precipitated recession in rest of Western Europe. It may also happen that countries have similar goals but are following uncoordinated economic policy which may have adverse impact on all. With many countries opening up their economy to International trade and joining the integrated global economy the need of coordination in international macroeconomic policies has become pressing.
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