Publication: Macroeconomic policies in a monetary un...
Master data
| Title: | Macroeconomic policies in a monetary union: a dynamic game |
| Subtitle: | |
| Abstract: | The authors develop a dynamic game model of a two-country monetary union to study strategic interactions between macroeconomic policy makers facing adaptive inflationary expectations. In this union, governments of participating countries pursue national goals when deciding about fiscal policies, whereas the common central bank's monetary policy aims at union-wide objectives. For a symmetric demand shock, the authors derive numerical solutions of the dynamic game between the governments and the central bank, using the OPTGAME algorithm. Different solution concepts for this game serve as models of a conflict between national and supra-national institutions (non-cooperative Nash equilibrium) on the one hand and of coordinated policy-making (cooperative Pareto solutions) on the other. The authors show that the volatility of output and inflation increase when actual inflation reacts more strongly to expected inflation. Moreover, there is a trade-off between instruments' and targets' deviations from desired paths. |
| Keywords: |
| Publication type: | Article in journal (Authorship) |
| Publication date: | 01.06.2004 (Print) |
| Published by: |
Central European Journal of Operations Research
Central European Journal of Operations Research
(
Springer Verlag GmbH;
)
to publication |
| Title of the series: | - |
| Volume number: | 12 |
| Issue: | 2 |
| First publication: | Yes |
| Page: | pp. 171 - 186 |
Versionen
| Keine Version vorhanden |
| Publication date: | 01.06.2004 |
| ISBN: | - |
| ISSN: | 1612-4804 |
| Homepage: | http://www.springerlink.com/content/1435-246X |
Authors
Assignment
| Organisation | Address | ||||
|---|---|---|---|---|---|
|
Fakultät für Wirtschafts- und Rechtswissenschaften
Institut für Volkswirtschaftslehre
|
AT - A-9020 Klagenfurt |
Categorisation
| Subject areas | |
| Research Cluster | No research Research Cluster selected |
| Citation index |
Information about the citation index: Master Journal List
|
| Peer reviewed |
|
| Publication focus |
Classification raster of the assigned organisational units:
|
| working groups | No working group selected |
Cooperations
Research activities
| Projects: |
|
| Publications: |
|
| Events: | No related events |
| Lectures: | No related lectures |