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Enumerate about the short-run Phillips curve
Diagrammatically the short-run Phillips curve becomes flatter under coordination as opposed to no coordination. If one country expands its money supply in isolation then its exchange rate will depreciate causing the cost of imports to rise, and this stimulates inflation. If, however, monetary policy is coordinated, and all countries expand their money supplies simultaneously, then the exchange rate effects are less severe and so inflation is tempered. The costs of expansionary monetary policy caused by higher inflation are less for a coordinated expansion of monetary policy, than for an isolated expansion of monetary policy by one country.
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