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Macroeconomic policy strategies in a monetary union: simulations with a dynamic-game model

• Reinhard Neck
• Dmitri Blueschke
• Viktoria Blueschke-Nikolaeva

(2023). ECMS 2023, 37th Proceedings
Edited by: Enrico Vicario, Romeo Bandinelli, Virginia Fani, Michele Mastroianni, European Council for Modelling and Simulation.
DOI: http://doi.org/10.7148/2023
ISSN: 2522-2422 (ONLINE)
ISSN: 2522-2414 (PRINT)
ISSN: 2522-2430 (CD-ROM)
ISBN: 978-3-937436-80-7
ISBN: 978-3-937436-79-1 (CD) Communications of the ECMS Volume 37, Issue 1, June 2023, Florence, Italy June 20th – June 23rd, 2023

https://doi.org/10.7148/2023-0083

Reinhard neck, Dmitri blueschke, Viktoria blueschke-nikolaeva (2023). Macroeconomic Policy Strategies in a Monetary Union: Simulations with a Dynamic-Game Model, ECMS 2023, Proceedings Edited by: Enrico Vicario, Romeo Bandinelli, Virginia Fani, Michele Mastroianni, European Council for Modelling and Simulation. doi:10.7148/2023-0083

We analyze alternative strategies of monetary and fiscal policies in a monetary union model with a small macroeconomic model by numerical simulations in the framework of a dynamic game. Several coalitions between governments of the member countries and the common central bank are investigated. We show that only a coalition between all governments and the central bank is efficient, while a fiscal union or other partial coalitions can be counterproductive.