The simple geometry of transmission and stabilization in closed and open economies

Giancarlo Corsetti and Paolo Pesenti

No ECO2005/26, Economics Working Papers from European University Institute

Abstract: This paper provides an introduction to the recent literature on macroeconomic stabilization in closed and open economies. We present a stylized theoretical framework, and illustrate its main properties with the help of an intuitive graphical apparatus. Among the issues we discuss: optimal monetary policy and the welfare gains from macroeconomic stabilization; international transmission of real and monetary shocks and the role of exchange rate pass-through; the design of optimal exchange rate regimes and monetary coordination among interdependent economies.Classification-JEL: E31, E52, F42

Keywords: optimal monetary policy; nominal rigidities; exchange rate pass-through; international cooperation (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-mac and nep-mon
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Citations: View citations in EconPapers (41)

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Related works:
Chapter: The Simple Geometry of Transmission and Stabilization in Closed and Open Economies (2009)
Working Paper: The Simple Geometry of Transmission and Stabilization in Closed and Open Economies (2005)
Working Paper: The simple geometry of transmission and stabilization in closed and open economies (2005)
Working Paper: The Simple Geometry of Transmission and Stabilization in Closed and Open Economies (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:eui:euiwps:eco2005/26

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