The paper studies stabilization-coordination in Europe. Conventional models (welfare analysis and game-theoretical approach) are used to show that fiscal policy coordination may improve the welfare of countries in a symmetrical framework (identical preference).

This paper givers a motivation and a mothod for a fast intergration of the reforming countries of central Europe into the European union. The motivation is based on a model of self-fulfilling prophecies where the expectation of entry can trigger the coordination of expectations towards a...