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Bibliographic Details
Main Authors: Cserháti, Ilona, Gyurkovics, Éva, Takács, Tibor
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2512.15723
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Table of Contents:
  • To model the interaction of fiscal and monetary policy, a novel discrete-time, uncertain, infinite time horizon, dynamic game model is developed, where the uncertainties of expectations are modeled by unknown nonlinear but quadratically constrained deterministic functions. Cost-guaranteeing Nash strategies are defined for fiscal and monetary policy as two players. The model is suitable for comparative analysis of the development paths of catching-up economies. Specifically, we evaluate nine possible development paths for the Hungarian economy, where each path is characterised by a proxy for the debt-to-GDP ratio.