What can we tell about monetary policy synchronization and interdependence over the 2007-2009 global financial crisis?

► We study the synchronization and interdependence of international interest rates. ► Bi-directional feedback measures and appropriate STECM are estimated. ► We find evidence of increasing synchronization of these rates during 2005-2009. ► Interest rates converge nonlinearly towards a common long-run equilibrium. ► Underlying monetary policies are strongly interdependent, but slightly synchronous.