On the formation of political coalitions
Article Abstract:
Game-theory can be used to understand the setting up of coalitions between political parties. There are two issues that are important, one is the extent to which a party desires to hold office, and the other relates to preferences for particular policies. Coalitions may be more stable if there is more of a chance to hold office, especially where there are not many political parties, as is the case of Austria and Germany. Stability is more difficult to achieve with a greater number of parties.
Publication Name: Journal of Institutional & Theoretical Economics
Subject: Economics
ISSN: 0932-4569
Year: 1997
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The political choice and collapse of fixed exchange rates
Article Abstract:
Exchange rate policy is affected by political factors though it is often seen in terms of monetary policy. Governments may choose to adopt fixed exchange rates in order to secure support from domestic interest groups. Pressure from outside the nation can affect domestic balances and lead to a move toward flexible rates of exchange. Support for monetary union is affected by forecasts of exogenous shocks such as petroleum price shocks.
Publication Name: Journal of Institutional & Theoretical Economics
Subject: Economics
ISSN: 0932-4569
Year: 1996
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MONETARY REGIMES AS INSURANCE SCHEMES. OLD WINE IN NEW BOTTLES?(*)
Article Abstract:
Insurance economics can be applied to monetary policy to evaluate the trade-off between flexibility and commitment. Monetary regimes are regarded as alternative insurance schemes for output stabilization. Discretionary monetary policy represents full insurance with the optimal level of output stabilization, whereas a zero inflation rule represents no insurance. The implications of asymmetric information are also considered.
Publication Name: Manchester School
Subject: Economics
ISSN: 1463-6786
Year: 1998
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