imbalances did not grow endlessly, instead narrowing when region-specific liquidity shocks subsided, mutual assistance created …

framework is preserved. In the short term, unanticipated shocks to the real exchange rate may instead affect aggregate inflation … the size, differences in economic structure and the variance-covariance matrix of supply and real exchange rate shocks … real exchange rate or country-specific supply shocks in ACs, the consequences would be limited for both the current and the …

asymmetric national output shocks. The welfare implications are deduced both analytically and with the use of simulations. In a …

in shocks and differences in the degree of wage and price flexibility. …