Resource title

A Nash threat game of passing through Exchange Rate Mechanism II

Resource image

image for OpenScout resource :: A Nash threat game of passing through Exchange Rate Mechanism II

Resource description

Following entrance into the European Union, Central Eastern European Countries (CEECs) are expected to join the European Monetary Union (EMU). These countries may incur considerable costs over the course of their passing through the required Exchange Rate Mechanism II (ERM-II). However, with enough bargaining leverage CEECs may be able to pass some of these costs on to current EMU-members. In turn, a CEEC s leverage depends on their ability to wield successful brinkmanship via an exchange-rate policy characterized by a threaten-thy-neighbor strategy. A two-stage Nash-threat game captures the essentials of the CEECs phase of ERM-II pass through.

Resource author

Christian Fahrholz

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25616

Resource license

Adapt according to the presented license agreement and reference the original author.