In this paper we briefly introduce dynamic games and their applications to problems of operations research and economics. We present an application of the dynamic tracking games framework to modeling policies in a monetary union published recently [4, 5]. Using the OPTGAME algorithm for the numerical approximate solution of dynamic games between governments and the common central bank in a small macroeconomic model, we show the impacts of exogenous shocks and analyze several possible coalitions between the policy makers.

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Dynamic Game Models of Macroeconomic Policies for a Monetary Union

  • Reinhard Neck

摘要

In this paper we briefly introduce dynamic games and their applications to problems of operations research and economics. We present an application of the dynamic tracking games framework to modeling policies in a monetary union published recently [4, 5]. Using the OPTGAME algorithm for the numerical approximate solution of dynamic games between governments and the common central bank in a small macroeconomic model, we show the impacts of exogenous shocks and analyze several possible coalitions between the policy makers.