TY  - JOUR
AU  - Corsetti,Giancarlo
AU  - Pesenti,Paolo
TI  - The Simple Geometry of Transmission and Stabilization in Closed and Open Economies
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11341
PY  - 2005
Y2  - May 2005
UR  - http://www.nber.org/papers/w11341
L1  - http://www.nber.org/papers/w11341.pdf
N1  - Author contact info:
Giancarlo Corsetti
Faculty of Economics
Cambridge University
Sidgwick Avenue
CB3 9DD Cambridge, Cambs
United Kingdom
Tel: +44(0)1223335235
E-Mail: giancarlo.corsetti@gmail.com

Paolo A. Pesenti
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
Tel: 212/720-5493
Fax: 212/720-6831
E-Mail: paolo.pesenti@ny.frb.org
M1  - published as Richard Clarida. "Comment on "The Simple Geometry of Transmission and Stabilization in Closed and Open Economies"," in Richard Clarida and Francesco Giavazzi, organizers, "NBER International Seminar on Macroeconomics 2007" University of Chicago Press (2008)

AB  - 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.
ER  -