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Research Interests

International Economics and Open Economy Macroeconomics


Ph.D. from Yale (1992), his contributions range from theoretical and empirical work on fiscal and monetary policy, to analyses of currency and financial crises and their international contagion. Serves as co-editor of the Journal of International Economics, Programme Director at Centre for Economic Policy Research in London, and scientific consultant to the Bank of England and the European Central Bank.

Recent Publications

Published Papers

Bergin, P. R. and Corsetti, G. Beyond Competitive Devaluations: The Monetary Dimensions of Comparative Advantage, American Economic Journal: Macroeconomics vol 12 no. 4 (2020) pp. 246-286
Acconcia, A., Corsetti, G. and Simonelli, S. Liquidity and Consumption: Evidence from Three Post-earthquake Reconstruction Programs in Italy, American Economic Journal: Macroeconomics vol 12 no. 3 (2020) pp. 319-346
Corsetti, G., Erce, A. and Uy, T. Official Sector Lending Strategies During the Euro Area Crisis, The Review of International Organizations vol 15 (2020) pp. 667–705
Bodenstein, M., Corsetti G. and Guerrieri, L. Social Distancing and Supply Disruptions in a Pandemic, Covid Economics: Vetted and Real-Time Papers (19) (2020) pp. 1-52
Corsetti, G., Eichengreen, B., Hale, G. and Tallman, E. The Euro Crisis in the Mirror of the EMS: How Tying Odysseus to the Mast Avoided the Sirens but Led Him to Charybdis, Open Economies Review vol 31 (2020) pp. 219-236

Cambridge Working Papers in Economics

Bodenstein, M., Corsetti, G. and Guerrieri, L. Economic and Epidemiological Effects of Mandated and Spontaneous Social Distancing, (2021) CWPE2117
Corsetti, G., Kuester, K., Müller, G. J. and Schmidt, S. The Exchange Rate Insulation Puzzle, (2021) CWPE2109
Bodenstein, M., Corsetti, G. and Guerrieri, L. Social Distancing and Supply Disruptions in a Pandemic, (2020) CWPE2031
Bergin, P. R. and Corsetti, G. The Macroeconomic Stabilization Of Tariff Shocks: What Is The Optimal Monetary Response?, (2020) CWPE2026
Corsetti, G. and Marin, E. A. A Century of Arbitrage and Disaster Risk Pricing in the Foreign Exchange Market , (2020) CWPE2020

Authored Book

Giancarlo, C., Feld, L.P., Lane, P.R., Reichlin, L A new start for the Eurozone: dealing with debt, (2015) Monitoring the Eurozone - CEPR

Chapter in Book

Corsetti, G., Lloyd, S. and Marin, E. Emerging Market Currency Risk Around ‘global disasters’: Evidence from the Global Financial Crisis and the COVID-19 Crisis, (2020), in COVID-19 in Developing Economies. Edited by Simeon Djankov, Ugo Panizza - A CEPR Press eBook
Corsetti, G., Dedola, L. and Leduc, S. Optimal monetary policy in open economies, (2010), in Handbook of monetary economics. Edited by Ben Friedman, Michael Woodford - North-Holland

Research Activities

Social Distancing: Does Voluntary or Mandated Distancing have more Economic Impact?
New research by Professor Giancarlo Corsetti questions the assumption that voluntary social distancing has less economic impact than mandated social distancing in the current pandemic.
Published on - Monday 1st March 2021

Phillips Curve and Internal Devaluation Mini Conference
Cambridge-INET, the Centre for Macroeconomics and the Cambridge Faculty of Economics are holding a Mini Conference on the "Phillips Curve and Internal Devaluation: The Regional Transmission of Business Cycle and Monetary Shocks". It will take place on Tuesday 16th February 2021 from 3PM – 5.50PM GMT and will be held online. See the event page for more details.
Event Date - Tuesday 16th February 2021

It’s All in the Mix: How Monetary and Fiscal Policies Can Work or Fail Together
Professor Giancarlo Corsetti is one of the speakers at the Presentation of the 23rd Geneva Report on the World Economy webinar, which is being held on 3rd March 2021, 1:00 - 2:30 PM (UK time).
Published on - Wednesday 10th February 2021

When Flexible Exchange Rates Don’t Insulate Economies from External Shocks
Professor Giancarlo Corsetti, Keith Kuester (University of Bonn), Gernot Müller (University of Tübingen) and and Sebastian Schmidt (European Central Bank) have published an article for VOXeu titled "When flexible exchange rates don’t insulate economies from external shocks".
Published on - Wednesday 3rd February 2021

Eurozone Shocks Impact Outside the Eurozone
New research by Professor Giancarlo Corsetti suggests that monetary and economic shocks in the Eurozone have a significant impact in neighbouring countries outside the zone. But this impact is no different in countries which peg their currency to the euro, than in countries with a flexible exchange rate, such as the UK.
Published on - Monday 1st February 2021

Research Grants

Cambridge-INET Institute (INET)
Centre for Macroeconomics Transition Review - Working towards a stable and sustainable growth path (Economic and Social Research Council (ESRC))
The impact of trade policy and exchange rate shocks on trade (Economic and Social Research Council (ESRC))
A Dynamic Economic And Monetary Union (ADEMU) (Horizon 2020, Societal Challenges (SC))
Working Towards A Stable And Sustainable Growth Path (Centre for Macroeconomics) (Economic and Social Research Council (ESRC))

Institute for New Economic Thinking (INET)

The Cambridge-INET Institute
Coordinator for Transmission Mechanisms and Economic Policy Research Theme

Keynes Fund Sponsored Projects

Corsetti, G. and Eichengreen, B., The Making of the Euro-area Crisis: Lessons from Theory and History (JHLP)
Corsetti, G. and Crowley, M., Credit Constraints and Optimal Price Setting in International Markets (JHOR)
Corsetti, G., Lloyd, S. and Marin, E., Disaster Risk, Asset Prices and the Macroeconomy (JHUX)

COVID-19 Economic Research

Special Feature: Can Social Distancing Improve the Trade off Between Health and the Economy?
Fast and Furious: the Dollar and International Capital Flows in the COVID-19 Crisis

Handbook of Monetary Economics

Optimal monetary policy in open economies joint with Luca Dedola and Sylvain Leduc, published in the Handbook of Monetary Economics, vol. III, Edited by Ben Friedman and Michael Woodford, 2010. Note: I keep this copy clean of (the few) typos. If you read the book, please refer to HANDBOOK: ERRATA


PIIB Paper 2 - Lent - International Financial System
MPhil R200 - Advanced Macroeconomics
MPhil F510 - International Finance

PhD Students


Emile Marin
PhD Title: The Hegemon's Dilemma : Intertemporal terms of trade manipulation and expenditure-switching.
Seung Hyun Maeng
PhD Title: Saving Glut and Global Imbalances
Balduin Bippus
PhD Title: International Finance
Daniel Ostry
PhD Title: Tails of Foreign Exchange at Risk (FEaR)
Research: Macro-Finance and Disaster Risk
Naoki Yago
PhD Title:
Research: The Causation of Asset Price Bubbles and Financial Crises, and their Effects on Real Economy
Xiaoxiao Zhang
PhD Title:
Research: Revisiting Globalization and Inequality


Lidia Smitkova
PhD Title: Effects of trade on de-industrialization
Andrew Hannon
PhD Title: The Links between Bank and Sovereign Risk
Alba Patozi
PhD Title: Financial Stability and Macro-prudential Policies

Professor Giancarlo Corsetti

Professor of Macroeconomics

Research Group:

CV: Curriculum Vitae

Personal Site:

Contact Details
Room: 35
Office Hours: Monday 5.00-6.00pm
College: Fellow of Clare College