The Role of Financial Market Structure and the Trade Elasticity for Monetary Policy in Open Economies
研究了不完全国际风险分担和汇率波动如何影响开放经济中的最优货币政策，发现当市场不完全导致高价格波动和差风险分担时，国际政策协调的收益远大于以往研究。
Imperfect international risk sharing and exchange rate volatility matter for how monetary policy should optimally be conducted in an open economy through affecting policymakers’ terms of trade considerations. I study these motives for a classical and long‐standing question in international monetary economics: the size of potential gains from international policy coordination. In a relatively standard model I allow for various degrees of risk sharing by considering different assumptions on international financial markets, and a large region for the crucial parameter of the trade elasticity. When incomplete markets give rise to high volatility of international prices and poor risk sharing—such as in Corsetti, Dedola, and Leduc (2008) —gains from policy coordination are an order of magnitude larger than previous studies, working under the assumptions of complete markets, suggest.