Buiter, Willem H.; Corsetti, Giancarlo; Pesenti, Paolo - C.E.P.R. Discussion Papers - 1995
inflation-prone periphery countries that use an exchange rate peg as an anti-inflationary device, when the centre is hit by an … aggregate demand shock. Cooperation in the periphery is constrained to be symmetric: costs and benefits must be equal for all ….The first is when the constrained cooperative response of the periphery is a moderate common devaluation while the non …