Suchergebnisse

THIS PAPER EXAMINES THE INTERDEPENDENT NATURE OF MONETARY POLICIES. IN AN N-COUNTRY GAME WHERE EACH MONETARY AUTHORITY DECIDES ON ITS CREDIT EXPANSION, IT IS SHOWN THAT THE COURNET SOLUTION AND THE STACKELBURG FUNCTION LEADERSHIP SOLUTION DO NOT LIE ON THE CONTRACT CURVE, UNLESS THE AGGREVATED PREFERENCE OVER THE BALANCE OF PAYMENTS MATCHES THE INTERNATIONAL DIRECT RESERVES.