When countries decide to coordinate and form a coalition, an outsider country can take advantage of the situation and gain more than an insider, hence creating a free-rider problem that could threaten the stability of the coalition. But as far as the Euro zone is concerned, the emphasis put on...

This article presents a survey of the Fiscal Theory of the Price Level. According to it, there are two stable regimes of economic policies : one, traditional, where the monetary authorities control inflation and where the fiscal authorities must be concerned with their intertemporal balance....