@techreport{NBERw11341,
 title = "The Simple Geometry of Transmission and Stabilization in Closed and Open Economies",
 author = "Giancarlo Corsetti and Paolo Pesenti",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "11341",
 year = "2005",
 month = "May",
 URL = "http://www.nber.org/papers/w11341",
 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.},
}