The paper models monetary-fiscal interactions in the aftermath of an economic downturn and presence of fiscal stress. It focuses on the strategic aspect of the interaction between the central bank and the government that features both a conflict and a coordination problem in line with Sargent...

The paper models strategic monetary-fiscal interactions in the aftermath of the global financial crisis – in a single country as well as a monetary union. It depicts both the short-term (stabilization) perspective and the long-term (sustainability) perspective, and the link between them. This...

Developing a new and highly innovative theory of economic policy, this book deals with conflicts between strategic actions by public and private agents. It builds on the Lucas critique but also applies the tools introduced by Tinbergen and Theil to dynamic policy games and from there derives a...