International Dimension of Optimal Monetary Policy

Wednesday, 2 July 2014 to Friday, 4 July 2014
University of Cambridge
Centre for Economic Policy Research

The 21th EABCN training school has been a three days course on 'International Dimension of Optimal Monetary Policy' taught by professor Giancarlo Corsetti (University of Cambridge and CEPR). The course focused on:

  • Trade-offs between internal and external objectives reconsidered. Open-economy Phillips Curve, loss function and targeting rules. Monetary versus macro-prudential policies;
  • Open issues in the design of DSGE models for policy design and assessment:
    • Local currency price stability of imports;
    • Competitiveness;
    • Stabilization under fixed exchange rates: pitfalls in the so-called Walters' critique. Are multipliers larger under fixed exchange rate regime?
    • The transmission of sovereign risk. 
  • Click here for the course material