Strategies and Coordination among the Countries of the Euro and the Rest of the World
Strategies and Coordination among the Countries of the Euro and the Rest of the World

Summary/Abstract: The following work aims to highlight how the coordination of budgetary policies and coordination between these and the monetary policy of the European Central Bank can take advantage of the relationships of interdependence among the countries of the Euro- zone, in order to maximise the welfare of the area or to minimise losses due to shocks. Cooperative strategies will be analysed, and their effects compared with those arising from non- cooperative strategies. The analysis is conducted through a model that describes the European Monetary Union as a set consisting of two countries (Italy and Germany) open to the rest of the world. Eventually we will attempt to demonstrate that cooperative solutions are more effective than non- cooperative solutions.

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