... to minimize the loss, given the inflation functions, the M. Carlberg, Monetary and Fiscal Strategies in the World Economy, 217deficit in Europe, and a zero structural deficit in America. The ... result, monetary and fiscal interaction lowers inflation in America. On the other hand, it raises unemployment and the structural deficit there. Monetary and Fiscal Interaction between Europe and ... given a mixed shock in Europe, monetary and fiscal interaction lowers inflation in Europe. On the other hand, it raises unemployment and the structural deficit there. The initial loss of each...