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Conference Proceedings (2002), Proceedings of the International Trade and Finance Association-International Business at the Turn of the Century, International Trade and Finance Association (ITFA), pp. 139-156

Fiscal Policy in the European Monetary Union: An Analytical Framework

A good policy-mix is a prerequisite for economic stabilization. The problem is even more complex in the EMU. How to deal with free-riding behavior? How to coordinate fiscal policy? This paper analyses the efficiency conditionis of coordination rules, from strict to flexible rules. The first case is modeled within a symmetric information game, the second one within an asymmetric information situation. Policy implications are drawled.

FOURÇANS, A. and WARIN, T. (2002). Fiscal Policy in the European Monetary Union: An Analytical Framework. In: Proceedings of the International Trade and Finance Association-International Business at the Turn of the Century. International Trade and Finance Association (ITFA), pp. 139-156.