ABSTRACT
The most important message we have tried to convey in the monograph is a way to think about economic policy. Policy is chosen by individuals or groups with well-specified objectives, who interact strategically with other economic or political agents. One can therefore analyze economic policy as the solution of a joint optimization problem, or, more precisely as the equilibrium outcome if a game. Naturally, it is a special kind of game, in which the policymaker typically is the only non-atomistic player.
