Fiscal decentralization can actually improve fiscal performance and help internal markets work better. Coordinating fiscal policies in federal systems is a challenge, but rules and institutions can help. Unilateral federal controls on local governments usually don't work well. Instead, societal norms, voter activism, and market discipline are more effective in ensuring fiscal responsibility. Transparency, accountability, and comparative data are key for fiscal discipline. Decentralized fiscal systems seem to do better than centralized ones in managing monetary and fiscal policies and promoting transparent governance.