In this paper, we analyze coordination of macroeconomic stabilization policies within the EMU by focusing, in a dynamic set-up, on asymmetries, externalities, and the existence of a multi-country context. We study how coalitions among fiscal and monetary authorities are formed and what are their...

Parliamentary democracy means that the political executive is accountable to the parliamentary majority. However, when both the parliamentary majority and the cabinet consist of two or more distinct political parties, it is often difficult for the parliamentary majority to monitor and control...