Monetary and Fiscal policies interact in many ways. Recently the stance of fiscal policy in a number of countries has raised concerns about the risks for the outcomes of monetary policy. This paper first shows that these concerns are justified since, under ambitious fiscal policy makers,...

In existing game theoretic settings the timing of moves is deterministic, i.e. they occur with certainty at a pre-specified time. To add more realism we propose a framework in which, after an initial simultaneous move in time t = 0, one player gets to revise his action with positive probability...

In existing game theoretic settings the timing of moves is deterministic, i.e. they occur with certainty at a pre-specified time. To add more realism we propose a framework in which, after an initial simultaneous move in time t = 0, one player gets to revise his action with positive probability...