Interaction between Central Bank and Government:A Special Case

Michael Carlberg ()
Additional contact information
Michael Carlberg: Federal University of Hamburg

Chapter 8 in Strategic Policy Interactions in a Monetary Union, 2009, pp 1-6 from Springer

Abstract: The model of unemployment and inflation can be represented by a system of two equations: (1) $${\rm u} = {\rm A} - \alpha {\rm M} - {\rm \beta G}$$ (2) $${\rm \pi } = {\rm B} + {\rm \gamma M} - {\rm \beta G}$$ Here α denotes the monetary policy multiplier with respect to unemployment, β is the fiscal policy multiplier with respect to unemployment, ? is the monetary policy multiplier with respect to inflation, and δ is the fiscal policy multiplier with respect to inflation.

Keywords: Nash Equilibrium; Central Bank; Unit Increase; Money Supply; European Central Bank (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-92751-8_8

Ordering information: This item can be ordered from
http://www.springer.com/9783540927518

DOI: 10.1007/978-3-540-92751-8_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().