There is some recent empirical evidence that pass-through effects seem to be smaller than believed, but how small is small? Many economists are lately taking the bipolar view--either a pure float or a pure peg, but regimes in the middle break down. And some take an even harder position that in the long run, pegging regimes often break down too, as one recently did.
Multi-country issues There is no need to tell a European that the issues are just as rich when we get to the interactions. The ECB has successfully brought about what is probably the largest currency union in the history of the world. Those of you from Europe see, and fight about, any unresolved issues daily.