International monetary policy cooperation

CENTRAL BANK RESEARCH - Giancarlo Corsetti and Paolo Pesenti at the New York Fed have written a staff report titled "International Dimensions of Optimal Monetary Policy". This article finds that the gains to be made from international monetary cooperation are non-monotonically related to the degree of exchange rate pass-through.

AUTHORS' ABSTRACT

This paper provides a baseline general-equilibrium model of optimal monetary policy among interdependent economies with monopolistic firms that set

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