show that policy coordination within the EMU context is difficult because of these large country differences and …

In EMU, a country may have difficulty ensuring stability in the face of asymmetric shocks; the response may be unstable … performance within Europe. Within EMU, a country may have difficulty ensuring stability in the face of asymmetric shocks; the …

Union. We investigate to which extent the EMU, that introduced a common monetary policy and restrictions on fiscal policy at … alternative policy regimes in a stylized dynamic model of the EMU: (i) non-cooperative monetary and fiscal policies, (ii) partial …

stabilisation policies within the European Economic and Monetary Union (EMU). Moreover, in a dynamic setup, the consequences of this …-cooperative dynamic game with the other coalitions, and subject to the constraints of the internal dynamics of the EMU economy. The paper …

The main issue in the early years of EMU is one of credibility. On one hand, high exposure to asymmetric shocks and low … adaptability (be it in terms of stabilization or adjustment) to both symmetric and asymmetric shocks make the early years of EMU … potentially problematic. On the other hand, significant economic differences between EMU countries raise questions regarding the …

In this paper, we analyze coordination of macroeconomic stabilization policies within the EMU by focusing, in a dynamic …