Research Interests

International Economics and Open Economy Macroeconomics

Biography

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. 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
Corsetti, G. and Maeng, S. H. Debt Crises, Fast and Slow, (2020) CWPE2009
Bodenstein, M., Corsetti, G. and Guerrieri, L. The Elusive Gains from Nationally-Oriented Monetary Policy, (2020) CWPE2006

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 VoxEU.org 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

Media: Reuters Quotes 2020 Geneva Report
A report co-authored by Prof. Giancarlo Corsetti from the Faculty of Economics has been mentioned by Reuters. The 2020 Geneva Report looks at macroeconomic and financial instability and disruptive crises such as the COVID-19 pandemic. The report reckoned the cost of years of pro-cyclical monetary and fiscal policies was a “gradual erosion of policy space” to deal with shocks like this.
Published on - Wednesday 16th December 2020

Geneva Report: Fiscal Policies Must Work Together
The 2020 Geneva Report has been published. Co-authored by Professor Giancarlo Corsetti from the Faculty of Economics at the University of Cambridge, the 23rd report looks at macroeconomic and financial instability and disruptive crises such as the COVID-19 pandemic.
Published on - Tuesday 15th December 2020

Dominant Currency Pricing Mini Conference
Cambridge-INET, the Centre for Macroeconomics and the Faculty of Economics are holding a mini conference on "Dominant Currency Pricing". Organised by Professor Giancarlo Corsetti and Balduin Bippus. It will take place on Tuesday 1st December 2020, 3:10pm-6:00pm GMT (UK) and will be held online. See the event page for more details.
Published on - Tuesday 17th November 2020

Keynote: 2nd European Commission-JEDC Conference
TODAY Prof. Giancarlo Corsetti is delivering the keynote speech on "The exchange rate insulation puzzle" at the 2nd European Commission-JEDC conference entitled ‘Secular Stagnation, Low Interest Rates and Low Inflation: Causes and Implications for Policy’. It is being held online from 5-6 November 2020. More information here: Event details
Published on - Thursday 5th November 2020

European Commission and De Nederlandsche Bank Conference Keynotes
Professor Giancarlo Corsetti has been invited to give two keynote speeches. The first is at the 23rd Annual Research Conference of De Nederlandsche Bank, "Monetary Non-Neutrality: The Real Effects of Monetary Policy in the Short and Long Run", on the 29th October 2020 and the second is the 2nd European Commission-JEDC conference "Secular Stagnation, Low Interest Rates and Low Inflation: Causes and Implications for Policy", on the 5th-6th November 2020.
Published on - Tuesday 27th October 2020

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