MARC Record from Library of Congress

LEADER: 02306cam a22003377a 4500
001 2005616554
003 DLC
005 20050310105356.0
007 cr |||||||||||
008 050222s2001 nyu sb f000 0 eng
010 $a 2005616554
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aCorsetti, Giancarlo.
245 10 $aInternational dimensions of optimal monetary policy$h[electronic resource] /$cGiancarlo Corsetti and Paolo Pesenti.
260 $a[New York, N.Y.] :$bFederal Reserve Bank of New York,$c[2001]
490 1 $aStaff reports ;$vno. 124
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 2/22/2005.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"This paper provides a baseline general-equilibrium model of optimal monetary policy among interdependent economies with monopolistic firms that set prices one period in advance. Strict adherence to inward-looking policy objectives such as the stabilization of domestic output cannot be optimal when firms' markups are exposed to currency fluctuations. Such policies induce excessive volatility in exchange rates and foreign sales revenue, leading exporters to set higher prices in response to higher profit risk. In general, optimal rules trade off a larger domestic output gap against lower import prices. Monetary rules in a world Nash equilibrium lead to less exchange rate volatility relative to both inward-looking rules and discretionary policies, even when the latter do not suffer from any inflationary (or deflationary) bias. Gains from international monetary cooperation are related in an nonmonotonic way to the degree of exchange rate pass-through"--Federal Reserve Bank of New York web site.
650 0 $aMonetary policy$vEconometric models.
650 0 $aExports$xPrices$vEconometric models.
650 0 $aForeign exchange rates$vEconometric models.
650 7 $aEconomics, economic history and consumer affairs$2sigle
700 1 $aPesenti, Paolo A.
710 2 $aFederal Reserve Bank of New York.
830 0 $aStaff reports (Federal Reserve Bank of New York : Online) ;$vno. 124.
856 40 $uhttp://www.ny.frb.org/research/staff_reports/sr124.html