This paper studies the design of the policy mix in a monetary union, that is, the institutional arrangement specifying the relationships between the various policymakers present in the union and the extent of their capacity of action. It is assumed that policymakers do not cooperate. Detailing...

This paper analyses strategic fiscal policy-making within the context of the standard two-country-two-good real trade model developped by Turnovsky (1988). Introducing asymmetry between the two countries and assuming that one country acts as a Stackelberg leader relative to the other one, we...

This paper offers a framework to study commitment and cooperation issues in games with multiple policymakers. To reconcile some puzzles in the recent literature on the nature of policy interactions among nations, we prove that games characterized by different commitment and cooperation schemes...