It is shown in a game theoretic framework that it may pay off to signal a “conservative” policy stance--giving a high priority to price stability--by appreciating the exchange rate. Such an appreciation demonstrates to domestic producers and more precisely to the trade union that the new...

It is shown in a game theoretic framework that it may pay off to signal a quot;conservativequot; policy stance--giving a high priority to price stability--by appreciating the exchange rate. Such an appreciation demonstrates to domestic producers and more precisely to the trade union that the new...

Subject and purpose of the book is the investigation of economic policy issues with the help of non-cooperative game theory. The most important feature of our work is to look at the possible strategic interactions between various economic agents and/or institutions. We are also investigating the...