Title:A modern reconsideration of the theory of Optimal Currency Areas Author(s):CORSETTI, GiancarloDate:2008Citation:
- European Economy Economic Papers, 2008, No. 308, 1-39
Type:ArticleAbstract:What can be learnt from revisiting the Optimal Currency Areas (OCA) theory 50 years from its birth, in light of recent advances in open economy macro and monetary theory? This paper presents a stylized micro-founded model ...
Title:International Risk Sharing and the Transmission of Productivity Shocks Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2008Citation:
- Review of Economic Studies, 2008, 75, 2, 443-473.
Type:ArticleAbstract:This paper shows that standard international business cycle models can be reconciled with the empirical evidence on the lack of consumption risk sharing. First, we show analytically that with incomplete asset markets ...
Title:Cross-Border Spillovers from Fiscal Stimulus Author(s):CORSETTI, Giancarlo; MEIER, André; MÜLLER, Gernot J.Date:2010Citation:
- International Journal of Central Banking, 2010, Vol. 6, No. 1, pp. 5-37
Type:ArticleAbstract:The global recession of 2008–09 has revived interest in the international repercussions of domestic policy choices. This paper focuses on the case of fiscal stimulus, investigating cross-border spillovers from an increase ...
Title:International Dimensions of Optimal Monetary Policy Author(s):CORSETTI, Giancarlo; PESENTI, PaoloDate:2005Citation:
- Journal of Monetary Economics, 2005, 52, 2, 281-305
Type:ArticleAbstract:This paper provides a baseline general equilibrium model of optimal monetary policy among interdependent economies with monopolistic firms and nominal rigidities. An inward-looking policy of domestic price stabilization ...
Title:Twin Deficits, Openness, and the Business Cycle Author(s):CORSETTI, Giancarlo; MÜLLER, Gernot J.Date:2008Citation:
- Journal of the European Economic Association, 2008, Vol. 6, No. 2-3, pp. 404-413
Type:ArticleAbstract:In this article, we study the co-movement of the government budget balance and the trade balance at business-cycle frequencies. In a sample of 10 OECD countries we find that the correlation of the two time series is negative, ...
Title:High exchange-rate volatility and low pass-through Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2008Citation:
- Journal of Monetary Economics, 2008, 55, 6, 1113-1128.
Type:ArticleAbstract:Two specifications of an open-economy model are shown to generate high exchange-rate volatility and low exchange-rate pass-through (ERPT). In the model, price discrimination causes ERPT to be incomplete in both the short ...
Title:Twin deficit : squaring theory, evidence and common sense Author(s):CORSETTI, Giancarlo; MÜLLER, Gernot J.Date:2006Citation:
- Economic Policy, 2006, Vol. 21, No. 48, pp. 597-638
Type:ArticleAbstract:Simple accounting suggests that shocks to the government budget move the current account in the same direction, and this `twin deficits' intuition leads many observers to call for fiscal consolidation in the US as a necessary ...
Title:Productivity, terms of trade and the 'home market effect' Author(s):CORSETTI, Giancarlo; MARTIN, Philippe; PESENTI, PaoloDate:2007Citation:
- Journal of International Economics, 2007, 73, 1, 99-127.
Title:Openness and the Case for Flexible Exchange Rates Author(s):CORSETTI, GiancarloDate:2006Citation:
- Research in Economics, 2006, 60, 1, 1-21
Type:ArticleAbstract:Models of stabilization in open economy traditionally emphasize the role of exchange rates as a substitute for nominal price flexibility in fostering relative price adjustment. This view has been recently criticized on the ...
Title:Fiscal Imbalances and the Dynamics of Currency Crises Author(s):CORSETTI, Giancarlo; MACKOWIAK, BartoszDate:2006Citation:
- European Economic Review, 2006, 50, 5, 1317-1338
Type:ArticleAbstract:This paper analyzes links between the fiscal theory of the price level (FTPL) and the first generation models after Krugman (Journal of Money Credit and Banking 11 (1979), 311–325), exploring the idea that a synthesis ...