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...New open economy macroeconomics giancarlo corsetti european university institute of rome iii centre for economic policy research december preliminary not quote abstract starting in the early s refers to a vast body literature embracing theoretical framework analysis with goal overcoming limitations mundell fleming model while preserving empirical wisdom and friendliness traditional building general equilibrium models imperfect competition nominal rigidities noem has reconsidered conventional views on transmission monetary exchange rate shocks it contributed design optimal stabilization policies identifying international dimensions raising issues desirability coordination introduction henceforth is leading development economics its objective provide close connection debates consists choice theoretic featuring goods or labour markets this respect tight links related agendas pursued closed macro such as neoclassical synthesis neo wicksellian modelling logically consistent maintained hypot...