Journal article
Fiscal and monetary policy interactions: a game theory approach
Abstract
The interaction between fiscal and monetary policy is analyzed by means of a game theory approach. The coordination between these two policies is essential, since decisions taken by one institution may have disastrous effects on the other one, resulting in welfare loss for the society. We derived optimal monetary and fiscal policies in context of three coordination schemes: when each institution independently minimizes its welfare loss as a …
Authors
Saulo H; Rêgo LC; Divino JA
Journal
Annals of Operations Research, Vol. 206, No. 1, pp. 341–366
Publisher
Springer Nature
Publication Date
7 2013
DOI
10.1007/s10479-013-1379-3
ISSN
0254-5330