En outre, bien que la raction d'une politique montaire en 2008 soit complique par la prsence d'une augmentation ponctuelle du niveau des prix et d'une dprciation de la monnaie, la rcession, ainsi que la prvision dueconomies, the markets entered a new correction phase in the second half of May, because the publication of disappointing quarterly results by leading US investment banks and Standard & Poor's and Moody's downgrades of the credit enhancers MBIA and Ambac meant that a quick end to the crisis was relatively unlikely.Etats-Unis et dans les zones mergentes, les marchs sont entrs dans une nouvelle phase de correction au cours de la seconde quinzaine de mai, la publication par les grandes banques d'affaires amricaines de rsultats trimestriels mal orients, ainsi que la dgradation de la notation des rhausseurs de crdit MBIA et Ambac par les agences Standard & Poor's et Moody's, ayant rendu relativement improbable le scnario d'une sortie rapide de la crise.Version 1 : Received: 24 December 2017 / Approved: 26 December 2017 / Online: 26 December 2017 ( CET) Version 2 : Received: 22 January 2018 / Approved: 22 January 2018 / Online: 22 January 2018 ( CET) In this paper we present an application of the dynamic tracking games framework to a monetary union.We use a small stylized nonlinear three-country macroeconomic model of a monetary union to analyse the interactions between fiscal (governments) and monetary (common central bank) policy makers, assuming different objective functions of these decision makers.Using the OPTGAME algorithm we calculate solutions for several games: a noncooperative solution where each government and the central bank play against each other (a feedback Nash Equilibrium solution), a fully cooperative solution with all players following a joint course of action (a Pareto optimal solution), and three solutions where various coalitions (subsets of the players) play against coalitions of the other players in a noncooperative way.It turns out that the fully cooperative solution yields the best results, the noncooperative solution fares worst, and the coalition games lie in between, with a broad coalition of the fiscally more responsible countries and the central bank against the less thrifty country coming closest to the Pareto optimum.
Fed policy-makers meet eight times per year to make decisions about how to use monetary policy to meet economic goals.
The Fed cannot directly control inflation or keep employment high.
Instead, the Fed works indirectly by raising and lowering a specific interest rate called the federal funds rate.
Changes in the federal funds rate ripple through the financial markets by triggering changes in other short-term interest rates.
These ripple effects are intended to influence the amount of money and credit in the economy and ultimately impact jobs, prices, and output.