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A Macroeconomic Policy Game for a Monetary Union with Adaptive Expectations
Dynamic game Nash equilibrium Pareto solution Macroeconomics .
2011/8/21
We consider a dynamic game model of a two-country monetary union. Governments (fiscal policies) pursue national goals while the common central bank’s monetary policy aims at union-wide objectives. For...
'Core' and 'Periphery' in a Monetary Union: A Macroeconomic Policy Game
Monetary union Asymmetric union Dynamic game Numerical solutions Nash equilibrium Pareto solution Fiscal policy Monetary policy
2011/8/21
We develop a dynamic game model of a two-country monetary union to study strategic interactions between macroeconomic policy makers, namely the central bank and governments. In this union, the governm...