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...

A central issue for international monetary economics is to establish the impact of different exchange rate regimes on inflation performance. This paper addresses a key aspect of this question, how differences in country size affect inflation performance under alternative exchange rate regimes....