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;
- 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