Fiscal Policy Coordination in Europe: A Double-Edged Sword for Stability
The article discusses whether it is a good idea for European countries to coordinate their fiscal policies to work together better. The researchers looked at how this coordination could help manage economic changes and found that it works best when countries are hit by different types of economic problems. However, if countries face similar issues and can't agree with the European Central Bank, coordinating fiscal policies might not be helpful and could even make things worse.