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- W345733172 abstract "We develop a toolbox that characterizes the welfare-maximizing cooperative Ramsey policies under full commitment and open-loop Nash games between policymakers. We adopt the timeless perspective. Two examples for the use of our toolbox offer novel results. The first example revisits the case of monetary policy coordination in a two-country model to highlight sensitivity to the choice of policy instruments. For the second example, a central bank and a macroprudential policymaker are assigned distinct objectives in a model with financial frictions. Lack of cooperation can lead to large welfare losses even if technology shocks are the only source of fluctuations." @default.
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- W345733172 date "2019-01-01" @default.
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- W345733172 title "Macroeconomic policy games" @default.
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- W345733172 doi "https://doi.org/10.1016/j.jmoneco.2018.07.015" @default.
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