The paper models strategic monetary-fiscal interactions in the aftermath of the global financial crisis – in a single country as well as a monetary union. It depicts both the short-term (stabilization) perspective and the long-term (sustainability) perspective, and the link between them. This...

The paper models monetary-fiscal interactions in the aftermath of an economic downturn and presence of fiscal stress. It focuses on the strategic aspect of the interaction between the central bank and the government that features both a conflict and a coordination problem in line with Sargent...

Two crucial aspects of economic reality are uncertainty and dynamics. In this book, new models and techniques are developed to analyse economic dynamics in an uncertain environment. In the first part, investment decisions of firms are analysed in a framework where imperfect information regarding...