Plasmans J.E.J.K. et al. Dynamic Modeling of Monetary and Fiscal Cooperation Among Nations

Springer, 2006. – 324 p. – ISBN: 0387279318, 9780387279312Dynamic Modeling of Monetary and Fiscal Cooperation Among Nations analyzes coordination of monetary and fiscal stabilization policies between countries and currency areas using a dynamic game approach. The first four chapters introduce the reader to the dynamics of fiscal and monetary policy cooperation. Issues covered include: fiscal coordination, fiscal stringency requirements, structural and bargaining power asymmetries and the design of monetary and fiscal policymaking in a monetary union. In the four last chapters multiple-player settings with aspects of fiscal and/or monetary coordination are analyzed using the endogenous coalition formation approach. The analysis is focused on shock and model asymmetries and issues of multi-country coordination in the presence of (possibly many) monetary unions.
Keywords » Cooperation, Dynamic, Fiscal, Modeling, Monetary, Plasmans, Policy, areas, coalition, control, coordination, currency, endogenous, formation, game, international, macroeconomic, optimal, theoryInternational Policy Coordination.
Mathematical Background.
The Basic Symmetric Two-Country Model.
An MU Model with Active Monetary Policy.
Endogenous Coalition Formation Concepts.
Multi-Country Closed-Economy MU Model.
Accession to a Monetary Union.
World-wide Regional Policy Coordination.
By way of conclusion.