International monetary policy game /
The essays that make up this dissertation investigate
| Main Author: | |
|---|---|
| Format: | Thesis Book |
| Language: | English |
| Published: |
[Place of publication not identified] :
[publisher not identified] ;
1996.
|
| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=743149271&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | The essays that make up this dissertation investigate international monetary policies between governments. The first essay, "A k% Money Growth Leadership Rule in an International Monetary Policy Game," follows Canzoneri and Henderson's (1991) two country model to ask if a result similar to their exchange rate leadership rule that results in a Pareto equilibrium for the symmetric supply shock is available for the asymmetric demand shock. I find that, in response to asymmetric demand shocks, the Pareto outcome can be achieved by a k% money growth leadership rule in which one country, the leader, sets her best choice of money supply, and the follower sets hers to keep the total money supply growth at k%. The second essay, "Robustness of k% Money Growth Leadership Rule," investigates if the k% leadership rule works in some different environments modified from the one presented in the first essay. It shows that the k% leadership rule performs as well as cooperative game in a developed world economy with asymmetric shock. The third essay, "Sustainable Equilibria in an International Monetary Policy Game," develops an open economy with utility maximizing individuals, monopolistically competitive firms and sticky prices, based on Ireland (1994) closed economy model, to analyze the international monetary policies. It shows that the cooperative equilibrium between governments can be sustained even when governments lack the ability to commit to each other. |
|---|---|
| Item Description: | Vita. "Major Subject: Economics". |
| Physical Description: | ix, 60 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilms Inc. |
| Bibliography: | Includes bibliographical references. |