Game as a way of interaction between the state and the economy
The state and the economy interact to achieve their primary goal - to defend their own interests as much as possible. The key problem lies in the search for optimal ways of mutually beneficial activity of the state and the economy.
To effectively solve such problems, it is necessary to turn to a special tool for studying optimal strategies - game theory.
A game is understood as a process in which two or more parties participate in the struggle for the realization of their interests. Each side has its own goal and uses some strategy that can lead to a win or loss - depending on the behavior of other players. Game theory helps to choose the best strategies, taking into account the views of other participants, their resources and their possible actions.
Strategic interaction between the state and the economy does not imply an inevitable "loss" one at & quot; win & quot; another. The result of interaction between subjects can be both mutual benefit and mutual harm. Similar outcomes where the participants of the game can mutually benefit or, conversely, harm, in game theory are considered as games with a sum of greater or less zero and constitute a special class of games - games with a nonzero sum.
It is the use of the tools of the theory of games with a nonzero sum that allows us to identify a wider range of problems and their possible solutions than any other tool of modern economic theory. So, the theory of games allows to model the transmission mechanism of the monetary policy of the Central Bank.
Public policy and its results for the economy
State economic policy can be divided into two types of impact instruments - monetary (credit and financial) and fiscal (fiscal). Monetary policy is effective in the short term because of its immediate impact on the economy. Fiscal policy is more effective in the long run due to bureaucratization of its implementation (coordination at various levels of state power), and due to a long-term impact on the economy. The impact of fiscal policy in the long term is more predictable, which is why it is the least interesting in comparison with monetary policy from the point of view of modeling in game theory.
The subject of monetary policy in relation to the economy is the central bank of the country. To solve the main tasks of the Central Bank, it is necessary to conduct a verified monetary policy through monitoring the value of the refinancing rate and money supply.
An analysis of the transmission mechanism features of the central bank's impact shows the complexity of a straightforward perception of monetary policy and demonstrates the need for a more flexible modeling tool, such as game theory.
So, if we consider the policy of influence of the Central Bank through the transmission mechanism on private economic agents, the best way to do this research will be to present this influence as a game.
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