This paper applies the intertemporal approach to the current account to the case of monetary shocks. A two-country dynamic general equilibrium model with predetermined wages is proposed as a means to bridge the gap between Mundell-Fleming and modern intertemporal models. Early versions of...

The logical foundations of game-theoretic solution concepts have so far been developed within the confines of epistemic logic. In this paper we turn to a different branch of modal logic, namely temporal logic, and propose to view the solution of a game as a complete prediction about future play....