Openness and the case for flexible exchange rates

Research in Economics

Volumn 60, Issue 1, 2006, Pages 1-21

  Corsetti, Giancarlo ^a  

^a EUROPEAN UNIVERSITY INSTITUTE   (Italy)

Author keywords

Exchange rate pass through; Exchange rate regimes; International cooperation; Nominal rigidities; Optimal monetary policy

Indexed keywords

EID: 77956767833     PISSN: 10909443     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.rie.2006.02.001     Document Type: Article

References (24)

1. Benigno, P., Benigno, G., 2004. Designing targeting rules for international policy cooperation, forthcoming in Journal of Monetary Economics.
2. Burstein, A.T., Neves, J., Rebelo, S., 2003. Distribution costs and real exchange rate dynamics during exchange-rate-based stabilizations, Journal of Monetary Economics, forthcoming.
3. Canzoneri M.B., Cumby R., and Diba B. The need for international policy coordination: what's old, what's new, what's yet to come?. Journal of International Economics 66 (2005) 363-384
4. Clarida R., Galí J., and Gertler M. Optimal monetary policy in open vs. closed economies: an integrated approach. American Economic Review Papers and Proceedings 91 2 (2001) 248-252
5. Cole H., and Obstfeld M. Commodity trade and international risk sharing: How much do financial matters matter?. Journal of Monetary Economics 28 (1991) 3-24
6. Corsetti G., and Pesenti P. Welfare and Macroeconomic Interdependence. Quarterly Journal of Economics 116 2 (2001) 421-446
7. Corsetti G., and Pesenti P. International Dimensions of Optimal Monetary Policy. Journal of Monetary Economics 52 (2005) 281-305
8. Corsetti G., and Dedola L. Macroeconomics of International Price Discrimination. Journal of International Economics 67 (2005) 129-156
9. Corsetti, G., Dedola, L., Leduc, S., 2005. SDGE Models of High Exchange Rate Volatility and Low Pass-through, Center for Economic Policy Research Discussion Paper No. 5377.
10. Corsetti, G., Dedola, L., Leduc, S., 2005. "Optimal Monetary Policy in Open Economics: price stability with high exchange rate volatility," mimeo, European University Institute.
11. Devereux M.B., and Engel C. Monetary policy in the open economy revisited: price setting and exchange rate flexibility. Review of Economic Studies 70 (2003) 765-783
12. Devereux, M.B., Engel, C., 2004. Expenditure switching vs. real exchange rate stabilization: competing objectives for exchange rate policy. mimeo, Department of Economics, University of British Columbia.
13. Margarida, D., Obstfeld, M., 2004. Monetary Policy in the Open Economy Revisited: the case for flexible exchange rate restored, mimeo.
14. Friedman, Milton. 1953. The Case for Flexible Exchange Rates. In: Essays in Positive Economics, University of Chicago Press, Chicago, IL, pp. 157-203.
15. Galí J., and Monacelli T. Monetary policy and exchange rate volatility in a small open economy. The Review of Economic Studies 72 (2005) 707-734
16. Hau H. Exchange rate volatility and economic openness: theory and evidence. Journal of Money, Credit and Banking 34 (2002) 611-630
17. Kollmann R. Monetary policy rules in the open economy: effects on welfare and business cycle. Journal of Monetary Economics 49 (2002) 989-1015
18. Kollmann, R., 2004. Monetary Policy Rules in an Interdependent World, Center for Economic Policy Research Discussion Paper no. 4012.
19. Mundell R.A. Capital mobility and stabilization policy under fixed and flexible exchange rates. Canadian Journal of Economics and Political Science 29 (1963) 475-485
20. Monacelli, T., Faia, E., 2004. Ramsey Monetary Policy and International Relative Prices, European Central Bank w.p. 344.
21. Monacelli, T., 2003. Monetary policy in a low pass-through environment, forthcoming, Journal of Money Credit and Banking.
22. Obstfeld M., and Rogoff K. Global implications of self-oriented National Monetary Rules. Quarterly Journal of Economics 117 (2002) 503-536
23. Smets F., and Wouters R. Openness, imperfect exchange rate pass-through and monetary policy. Journal of Monetary Economics 49 (2002) 947-981
24. Sutherland A. Incomplete pass-through, and the welfare effects of exchange rate variability. Journal of International Economics 65 (2005) 375-399