Combined monetary and fiscal policy
The Nash Equilibrium for the case of non-cooperative game
Bibliographic Data
| ID | 15067752 |
|---|---|
| Authors | Joanna Stawska (0000-0001-6863-1210, University of Lodz, corresponding author), Maciej Malaczewski (0000-0001-7798-2581, University of Lodz), Agata Szymańska (0000-0001-5184-931X, University of Lodz) |
| Year | 2019 |
| Volume | 32 |
| Issue | 1 |
| Pages | 3554-3569 |
| Publication date | 2019-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economic Research-Ekonomska Istraživanja (JOURNAL) |
| Journal identifiers | ISSN: 1331-677X • E-ISSN: 1848-9664 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/1331677x.2019.1669063 |
| OpenAlex | W2977779172 |
| Language | EN |
| Citations received | 1 |
| References cited | 38 |
The importance of the central bank and the government conducting their policies has increased recently, with more attention being given to the effectiveness of policy mix. The non-cooperative models of the monetary and fiscal game are frequently employed to study interactions between both authorities. The models assume that the authorities take into account each other’s choices when making decisions. It is also important to remember when seeking equilibrium in the non-cooperative models that in the Nash Equilibrium (which is sought in this study) the parties try to come up with the best response to the opponent’s decision. The aim of the paper is to present the Nash Equilibrium in a non-cooperative game between the government and the central bank using a non-cooperative model of a fiscal-monetary game (a policy-mix MODEL). This study demonstrates that in the Nash Equilibrium in the model, the budget deficit and interest rate of an EU member state depend on the exogenous data (external to the model), such as inflation target, base inflation and the Maastricht deficit limit. This study is enhanced by an analysis of the government and central bank’s sensitivity to the deep parameters of economic variables
Economics · Equilibrium selection · Fiscal policy · Game theory · Macroeconomics · Microeconomics · Monetary economics · Monetary policy · Nash equilibrium · Policy mix · Price of stability · Repeated game · Economic theories and models · Fiscal Policies and Political Economy · Monetary Policy and Economic Impact
Non-Cooperative Games
Reconceptualising the ‘policy mix’ for innovation
Monetary Policy Rules and Macroeconomic Stability
Equilibrium points in n -person games
Econometric policy evaluation
Accounting for monetary and fiscal policy effects in a simple dynamic general equilibrium model
An Introduction to Applicable Game Theory
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,33 |
| Citation span | 2023 - 2023 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |