Monetary Policy Theory: An Introduction to Game Theory Methods

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Features: The development of economic theory over the past 10 years has made significant progress, enabling it to address these questions. The purpose of this textbook is to enable readers to understand the advancements in modern economic research in an intuitive way. The book introduces the fundamental principles of monetary policy theory, allowing readers to firmly grasp the rules that govern the formulation of banking policies in Western economies. This book is an academic monograph by the European Department that systematically studies monetary policy theory using game theory methods. Seeking appropriate institutional rules and monetary policy strategies for central banks has garnered increasing attention not only in Europe but also worldwide. The author applies game theory methods to analyze all issues in monetary policy theory, the forefront of current monetary economics research, and explains the models of monetary policy theory in an intuitive manner, greatly simplifying the analytical approach and deepening the understanding of theoretical models through practical examples. The theoretical insights provided in the book have played a significant role in the design of the institutional framework of the European Central Bank. The book offers innovative theoretical perspectives and concise analysis, making it particularly suitable for Chinese readers and capable of sparking their strong interest in game theory and monetary policy theory.