Buiter, Willem H.; Miller, Marcus H. - 2021
rate. One of the virtues claimed for such exchange rate 'overshooting', however, is its immediate effect on the price level … nominal inertia in both the level of labor costs and their trend or core rate of growth, this early overshooting of the …. Relative to other policies which achieve the same effect on steady-state inflation, exchange rate overshooting brings inflation …
