Hausken, Kjell; Ncube, Mthuli - Handelshøgskolen, Universitetet i Stavanger - 2013
We develop a game theoretic model for the central banks profit and the markets profit dependent on quantitative easing (QE) or no quantitative easing (no QE), where the market responds by lowering interest rates, keeping interest rates unchanged, or raising interest rates. The model is compared...