9 In this simple example, in which the two countries are hit by identical shocks, the offset in spillovers between the two economies will be complete.
If one country faces a larger aggregate demand shock than the other, then the situation becomes more like the one-country case we examined before, the policy adjustments lead to spillovers of different magnitudes, and the offset will be partial. -9the single core country, presumably magnified by the larger combined global weight of the two economies.