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.