• Table of Contents
    • Abstract
    • Keywords
    • Article
      • 1 A stylized NOEM model
      • 2 The international transmission mechanism and the allocative properties of the exchange rate
      • 3 International dimensions of optimal monetary policies
      • 4 Challenges to the NOEM literature
    • See Also
    • Bibliography
    • How to cite this article

new open economy macroeconomics

Giancarlo Corsetti
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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‘New open economy macroeconomics’ (NOEM) refers to a body of literature embracing a new theoretical framework for policy analysis in open economy, aiming to overcome the limitations of the Mundell–Fleming model while preserving the empirical wisdom and policy friendliness of traditional analysis. NOEM contributions have developed general equilibrium models with imperfect competition and nominal rigidities, to reconsider conventional views on the transmission of monetary and exchange rate shocks; they have contributed to the design of optimal stabilization policies, identifying international dimensions of optimal monetary policy; and they have raised issues about the desirability of international policy coordination.
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How to cite this article

Corsetti, Giancarlo. "new open economy macroeconomics." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 16 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2008_N000060> doi:10.1057/9780230226203.1185

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