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Fixed exchange rates and non-cooperative monetary policies

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Sebastián Gascón, Miguel (1987) Fixed exchange rates and non-cooperative monetary policies. [ Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales; nº 14, 1987, ISSN: 2255-5471 ]

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Official URL: http://eprints.ucm.es/21317/




Abstract

This paper presents a model which in a world with fixed exchange rates and absence of capital controls non-cooperative game yield multiple Nash equilibria with nonoptimal allocations, when we introduce regimes as strategies for the players. In general there is a unique Perfect Equilibrium for the game with both strategies. The sub-optimality of the non-cooperative solution provides scope for international coordination, in the form of joint choice of non-inflationary polices that dominate the Nash equilibria allocations.


Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Tipos de cambio fijos, Políticas monetarias no cooperativas, Nash
Palabras clave (otros idiomas):Fixer exchange rates, Monetary policies non-coperative
Subjects:Social sciences > Economics > Economic cooperation
Series Name:Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
Volume:1987
Number:14
ID Code:21317
Deposited On:13 May 2013 11:24
Last Modified:21 Apr 2015 12:09

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