International Monetary Cooperation Under Tariff Threats
AbstractWe analyse games between two countries which use the threat of imposing a tariff to induce each other to follow monetary policies equivalent to those that would obtain under a cooperative game. The analysis shows that -- under certain assumptions concerning the shares of tariff revenues, what the countries spend on imports, the punishment structures and the discount factors -- the outcome of the game converges to the equivalent of the cooperative equilibrium, with zero tariffs and optimal monetary policies. It is suggested that the model could be applied to current relations between the US, Germany and Japan.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 40.
Date of creation:
Date of revision:
Contact details of provider:
Postal: Piazza Scaravilli, 2, and Strada Maggiore, 45, 40125 Bologna
Phone: +39 051 209 8019 and 2600
Fax: +39 051 209 8040 and 2664
Web page: http://www.dse.unibo.it
More information through EDIRC
Other versions of this item:
- Basevi, Giorgio & Denicolo, Vincenzo & Delbono, Flavio, 1990. "International monetary cooperation under tariff threats," Journal of International Economics, Elsevier, vol. 28(1-2), pages 1-23, February.
- Basevi, Giorgio & Delbono, Flavio & Denicolo, Vincenzo, 1988. "International Monetary Cooperation under Tariff Threats," CEPR Discussion Papers 235, C.E.P.R. Discussion Papers.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Stahl, Dale O. & Turunen-Red, Arja H., 1995. "Tariff games: Cooperation with random variation in political regimes," European Journal of Political Economy, Elsevier, vol. 11(2), pages 215-238, June.
- Marion Kohler, 1998. "Optimal currency areas and customs unions: are they connected?," Bank of England working papers 89, Bank of England.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luca Miselli).
If references are entirely missing, you can add them using this form.