Welcome and news

Chair in Macroeconomics
Director of Cambridge-Inet
Fellow of Clare College, Cambridge


What is new?

I stepped down as director of Cambridge INET (I will be coordinator of one of the themes of the Institute). Here is my swan song:
TECOP Teaser image

  • Just published: Macroeconomic stabilization, monetary-fiscal interactions, and Europe’s monetary union with Luca DedolaMarek JarocińskiBartosz MaćkowiakSebastian Schmidt,  European Journal of Political Economy Volume 57, March 2019, Pages 22-33
  • Voxeu Column The euro crisis in the mirror of the European Monetary SystemCorsetti, Barry Eichengreen, Galina Hale, Eric Tallman, 15 February 2019
  • The Euro Crisis in the Mirror of the EMS. with Barry Eichengreen, Galina Hale and Eric Tallman, San Francisco Fed Working Paper 2019-04
    • Why was recovery from the euro area crisis delayed for a decade? The explanation lies in the absence of credible and timely policies to backstop financial intermediaries and sovereign debt markets. In this paper we add light and color to this analysis, contrasting recent experience with the 1992-3 crisis in the European Monetary System, when national central banks and treasuries more successfully provided this backstop. In the more recent episode, the incomplete development of the euro area constrained the ability of the ECB and other European institutions to do likewise.
  • Voxeu Column Official Lending and debt sustainability in the euro areaGiancarlo Corsetti, Aitor Erce, Timothy Uy, 13 February 2019
    • During the euro area crisis, management of official loan maturities emerged as a critical item in the discussion on which instruments and strategies are most effective at ensuring debt sustainability. Using a theoretical model calibrated to Portugal and cross-country data, this column shows that lengthening loan maturities and managing debt repayment flows has substantial effects on sustainability. It also unveils a key policy trade-off in official lending between increasing the amount of safe debt (immune from rollover risk) and strengthening the incentive to default in response to negative shocks to fundamentals.
Public Debt Sustainability and stabilization policy
Pricing to market
Monetary policy
Revision of older papers

Coming soon: 

  • The missing internal devaluation: Nominal and real adjustment to the Great Recession in the US, joint with Luca Dedola and Riccardo Trezzi
  • The elusive gains from inward-looking monetary policy, joint with Martin Bodestein and Luca Guerrieri

Recently published

Latest post in policy

Monitoring the EZ 2 
A report for the Fiscal Council of Sweden

Latest post in teaching

Cilento, Italy, 2013, Photo VC.