Monetary and fiscal strategies in the world economy

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This book examines the strategic interactions between monetary and fiscal policies within the world economy, divided into two regions, such as Europe and America. Central banks and governments act as policymakers, targeting low inflation, low unemployment, and low structural deficits amid various shocks—demand, supply, mixed, regional, and common. It develops a range of models from basic to advanced, focusing on Nash equilibrium. Key inquiries include whether policy interactions can mitigate existing losses following a shock and the extent of their effectiveness. Policy cooperation is also a significant topic, supported by numerous numerical examples. This work is part of a broader research project on European Monetary Union, with references provided at the end. Portions of the research were presented at several prestigious conferences, including the World Congress of the International Economic Association and the International Conference on Macroeconomic Analysis, among others. These presentations occurred at various workshops and seminars, showcasing the project's relevance to ongoing discussions in macroeconomic policy and international economics.