Buiter, Willem H.; Corsetti, Giancarlo; Pesenti, Paolo A. - 2021
inflation-prone Periphery Countries that use an exchange rate peg as an anti- inflationary device, when the Center 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 …
