The Nobel Economics Prize

In 1994, John C. Harsanyi, John F. Nash and Reinhard Selten, won the Nobel Economics Prize for their pioneering analysis of equilibrium in the theory of noncooperative games. The Nash equilibrium is one of the results which can be reached in models of non-cooperative games, in which individual action of the various participants, generates a result that is lower than that achieved if each decided to cooperate by agreeing a particular behavior. These models were shown to have great applicability in reality. And in these times of crisis, we have witnessed several examples of actions that replicate their results. One of them has been observed over the past weekend and had as protagonists the Latin American Central Banks. In a match that was attended by central bankers from Argentina, Brazil, Colombia, Chile, Mexico and Peru, it was agreed inter alia, avoid a devaluation war between them, agree to avoid sharp fluctuations in rates changes in these countries as has been observed in recent times, a product of international turbulence.

Without doubt an agreement of great importance and unimaginable in the past. In addition, at the meeting that was hosted by the president of Banco Central de Chile, Jose De Gregorio, American Bankers agreed to them in accordance with statement issued after the meeting, “Mechanisms for exchange of information and technical cooperation to facilitate determining courses of action to follow. ” That press release, highlights the confidence that the region “is better able to face the financial turbulence, thanks to its strong economic fundamentals” and that “it has means to preserve the integrity and smooth functioning of money markets and financial.