This paper explores the role of uncertain government preferences for fiscal and monetary policy interaction. Our analysis shows that the uncertainty about government preferences does not affect the macroeconomic equilibrium if the fiscal multiplier is known. In the case of multiplicative...

We study a non-cooperative communication game being played by national policymakers in a two-country economy including a beauty-contest argument in the utility functions of agents and cross-border real spillovers. Each policymaker receives signals on the real idiosyncratic shocks which a ect the...