Policy Competition and Policy Cooperation in a Monetary Union

1. Subject and Approach.- 2. The Monetary Union of Two Countries: Basic Models.- 3. The Monetary Union of Two Countries: Intermediate Models.- One. The Monetary Union of Two Countries: Basic Models.- 1. Monetary Policy in the Union.- 2. Fiscal Competition between Germany and France.- 3. Fiscal Cooperation between Germany and France.- 4. Competition between the Union Central Bank, the German Government, and the French Government.- 5. Cooperation between the Union Central Bank, the German Government, and the French Government.- 6. Independent Central Bank, Fiscal Cooperation between Germany and France.- 7. A Synopsis of the Basic Models.- Two. The Monetary Union of Two Countries: Intermediate Models.- 1. Fiscal Competition: A General Model.- 2. The Union Countries Differ in Size.- 3. The Union Countries Differ in Behaviour.- 4. Simultaneous and Independent Decisions.- 5. Gradualist Policies.- 6. Alternative Targets of the Union Central Bank.- 7. The German Government Targets Overemployment.- 8. No Spillovers of Fiscal Policy.- 9. Positive Spillovers of Fiscal Policy.- Three. The Monetary Union of Two Countries: Advanced Models.- 1. Cold-Turkey Policies: Sequential Decisions.- 2. Cold-Turkey Policies: Simultaneous Decisions.- 3. Gradualist Policies: Sequential Decisions.- 4. Gradualist Policies: Simultaneous Decisions.- 5. Monetary, Fiscal and Wage Competition.- Four. The Monetary Union of n Countries.- 1. The Monetary Union of Three Countries.- 2. The Monetary Union of Four Countries.- Five. Rational Policy Expectations.- 1. Rational Policy Expectations in Germany and France.- 2. Adaptive Policy Expectations in Germany and France.- 3. Adaptive Policy Expectations in Germany, Rational Policy Expectations in France.- Conclusion.- Result.- 1. Monetary Policy in the Union.- 2. Fiscal Competition between Germany and France.- 3. Fiscal Cooperation between Germany and France.- 4. Competition between the Union Central Bank, the German Government, and the French Government.- 5. Cooperation between the Union Central Bank, the German Government, and the French Government.- 6. Independent Central Bank, Fiscal Cooperation between Germany and France.- Symbols.- A Brief Survey of the Literature.- The Current Research Project.- References.