The article explores how coordinating fiscal policies between countries can impact economic growth and efficiency. By analyzing a two-country model with endogenous growth and imperfect capital mobility, the researchers find that uncoordinated fiscal policies can lead to inefficiently high spending on investment and redistribution. This inefficiency is due to negative effects on economic growth in other countries. Coordinating only investment policy can reduce this inefficiency, but it may increase inefficiency in providing public goods without coordination.