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. 246-286Acconcia, 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) CWPE2117Corsetti, 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 - CEPRChapter 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 eBookCorsetti, 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
Teaching
PIIB Paper 2 - Lent - International Financial System
MPhil R200 - Advanced Macroeconomics
MPhil F510 - International Finance
PhD Students
Supervisor

PhD Title: The Hegemon's Dilemma : Intertemporal terms of trade manipulation and expenditure-switching.
Research:



PhD Title: Tails of Foreign Exchange at Risk (FEaR)
Research: Macro-Finance and Disaster Risk

PhD Title:
Research: The Causation of Asset Price Bubbles and Financial Crises, and their Effects on Real Economy

Advisor


