Does exchange rate overshooting happens to economy with a credible peg?
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Does exchange rate overshooting happens to economy with a credible peg? If such economy is currently below full

employment, and I want to use monetary policy(not fiscal) to bring it back to full employment. However doing so will raise the exchange rate, which violates the peg. How do I maintain the peg and full employment at the same time using only monetary policy? Thank you

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