Strategic interactions between policymakers arise whenever each policymaker has distinct objectives. Deviating from full cooperation can result in large welfare losses. To facilitate the study of strategic interactions, we develop a toolbox that characterizes the welfare-maximizing cooperative...

The replacement of national currencies by a common currency in the EMU causes a monetary externality if the European Central Bank is inclined to monetize part of outstanding government debt in the community.High government debt in one part of the EU then increases the common inflation rate.We...

The goal of this paper is to show how adding behavioral components to micro-foundated models of macroeconomics may contribute to a better understanding of real world phenomena. The authors introduce the reader to variations of the Keynesian Beauty Contest (Keynes, The General Theory of...

Chapter 1. Introduction -- Chapter 2. Blockchain, decentralized consensus and trust -- Chapter 3. The basic mining game. -- Chapter 4. Higher level models -- Chapter 5. The future monetary system -- Chapter 6. Regulation -- Chapter 7. Conclusions.

Ten countries with economies in transition and two market economies are negotiating full membership with the EU. The purpose of this paper is to consider the economic dimension of the forthcoming enlargement of the EU, especially on the characteristics of the economies in transition and on the...

Recently, a new class of macroeconomic business cycle models has emerged. Stochastic dynamic general equilibrium models with rational expectations originally employed by RBC researchers are combined with nominal rigidities and imperfect competition traditionally highlighted by New Keynesian...