%0 Report
%A Sebastián Gascón, Miguel
%T Fixed exchange rates and non-cooperative monetary policies
%J Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
%D 1987
%@ 2255-5471
%U https://hdl.handle.net/20.500.14352/65976
%X 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.
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