@article{c5f6d61327b244a89aaa31a7aa1cab0f,
title = "Optimal strategic monetary policies in dynamic interdependent economies A summary paper",
author = "Tamer Ba{\c s}ar and Turnovsky, \{Stephen J.\} and Vasco D'orey",
note = "The analysis is based on two symmetric economies. This has the advantage of simplifying the feedback rules, with the real money supply in each economy bein8 adjusted to the real exchange rate. We begin by deriving analytical expressions for the optimal policies. However, even for the simple model we adopt, these formal expressions are extremely complex and provide only limited insight. For this reason, our analysis is carried out using numerical simulation methods. In this regard our procedure is as follows. We consider a base set of plausible parameter values which are broadly consistent with available empirical evidence. The various dynamic equilibria corresponding to these parameter sets are computed for finite horizon games, and convergence properties of these equilibria are studied as the number of periods in the game leads to infinity. In order to determine the extent to which the results depend *This research was supported in part by Grant No. SES-8409886 from the National Science Foundation.",
year = "1986",
month = jun,
doi = "10.1016/0165-1889(86)90010-2",
language = "English (US)",
volume = "10",
pages = "15--19",
journal = "Journal of Economic Dynamics and Control",
issn = "0165-1889",
publisher = "Elsevier B.V.",
number = "1-2",
}