Lecture: A macroeconomic policy game in an monetary union
Master data
| Title: | A macroeconomic policy game in an monetary union |
| Description: | We consider a dynamic game model of a two-country monetary union (which makes a total of 3 players). Governments (fiscal policies) pursue national goals while the common central bank’s monetary policy aims at union-wide objectives. For a symmetric demand shock, we derive numerical solutions of the dynamic game between the governments and the central bank. We consider conflicting (non-cooperative Nash equilibrium) and coordinated policy-making (cooperative Pareto solutions). We show that there is a trade-off between the deviations of instruments and targets from desired paths; the volatility of output and inflation increases when private agents react more strongly to changes in actual inflation. |
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| Type: | Registered lecture |
| Homepage: | - |
| Event: | 8th Viennese Workshop on Optimal Control, Dynamic Games, and Nonlinear Dynamics: Theory and Applications in Economics and OR/MS (Vienna) |
| Date: | 15.05.2003 |
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Assignment
| Organisation | Address | ||||
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Fakultät für Wirtschafts- und Rechtswissenschaften
Institut für Volkswirtschaftslehre
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AT - A-9020 Klagenfurt |
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