policies under the assumption of asymmetric shocks hitting the core and the periphery. We find that macroprudential policy is … able to partly make up for the loss of independent monetary policy in the periphery. Moreover, LTV policy seems more …

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 …