Journal of Economic Surveys

Volume 29, Issue 5
ARTICLE

A PRIMER ON GLOBAL GAMES APPLIED TO MACROECONOMICS AND FINANCE

José Jorge

Faculdade de Economia, Universidade do Porto CEF.UP

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Joana Rocha

Faculdade de Economia, Universidade do Porto CEF.UP

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First published: 05 June 2014
Cited by: 6

Abstract

This paper shows how to solve global games applied to macroeconomics and finance. We ascertain the roles of public and private information for the determination of a unique equilibrium, and discuss the informative role of market prices. We examine the impact of public information on social welfare, comparing models with and without complementarities at the aggregate level.

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