The debate about the use of fiscal instruments for macroeconomic stabilization has regained prominence in the aftermath of the Great Recession, and the experience of a monetary union equipped with fiscal shock absorbers, such as the United States, has often been a reference. This paper enhances...

History shows that governments usually rethink their views on international macroeconomic cooperation after the emergence of a crisis. The response of the Asian countries after the speculative attacks occurred in 1997 may be considered as another example after the European ERM crisis in 1992-93....