ABSTRACT. The main purpose of Grimm and Ried’s numerical approach is to rank the different scenarios of strategic behavior of monetary and fiscal policies for the losses they induce. According to Höpner and Schäfer, institutions are the instruments with which society governs the economic behavior of its constituencies. Humphrey holds that the globalization of retailing is having a profound impact on market structures in developing countries. Chari and Kehoe maintain that once the nominal wages are set, the monetary authority will deviate.