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Determine the focal point for coordination
The focal point for coordination is point C, which is the unique symmetrical Pareto efficient outcome. Compared to this outcome the Nash equilibrium now involves both countries setting too fast a growth rate for their domestic money supply. This occurs as each country seeks to bid up the growth rate of its money supply, whilst again ignoring the adverse effects this has on the other country. In this situation such beggar-thy-neighbour policy leads to an expansionary bias.
What are the features of the OMC process Participation is also seen as a central feature of the OMC process, especially if it is to be extended beyond 'top-down' to encompass '
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