Corsetti, Giancarlo; Maćkowiak, Bartosz - 2023
, preserving price and fiscal stability, or fail, leading to a delayed, possibly large jump in the price level. The resulting …, multiple equilibria arise naturally: whether or not price stability is preserved may depend on private agents' expectations … dynamics resemble the models of a currency crisis following Krugman (1979) and Obstfeld (1986). Like in Obstfeld's work …