The article explores how coordinating fiscal policies in a currency union can help stabilize the economy. By using a model of two countries in the Eurozone, the researchers found that targeting net exports for fiscal coordination leads to more stable dynamics. They also discovered that consolidating government budgets and adjusting tax rates together can provide better stabilization. Importantly, they found that taxes on wage income are more harmful than taxes on firm sales. The study suggests that using fiscal policy to balance trade between countries or creating a fiscal union can help manage the Eurozone economy effectively, while avoiding excessive labor taxes in favor of sales taxes.