Template-type: ReDIF-Paper 1.0
Author-Name: Miguel Sebastián
Author-Workplace-Name: Universidad Complutense de Madrid, Departamento de Fundamentos del 
	Análisis Económico II (Economía Cuantitativa)
Title: Fixed exchange rates and non-cooperative monetary policies 
Abstract: This paper presents a model which in a world with fixed exchange rates and absence of capital 
	controls non-cooperative game yield multiple Nash equilibria with nonoptimal allocations, when we 
	introduce regimes as strategies for the players. In general there is a unique Perfect Equilibrium 
	for the game with both strategies. The sub-optimality of the non-cooperative solution provides 
	scope for international coordination, in the form of joint choice of non-inflationary polices that 
	dominate the Nash equilibria allocations.

Keywords: Tipos de cambio fijos, Fixer exchange rates, Monetary policies non-coperative, Políticas 
	monetarias no cooperativas, Nash.

Length: 44 pages
Creation-Date: 1987 
Number: 87-14 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doctra87-14.txt
File-URL: https://eprints.ucm.es/id/eprint/21317/1/8714.pdf 
File-Format: Application/pdf
Handle: RePEc:ucm:doctra:87-14