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Policy coordination
Policy coordination occurs when countries agree to pursue policies intended to promote the welfare of all nations involved in the agreement. Spillover effects occur when one country's economic policy affects the economic performance of at least one other country. In the absence of policy coordination each country ignores these externalities and seeks to maximise its own individual welfare. If all countries act independently the outcome will be Nash equilibrium. With spillover effects this equilibrium is likely to be Pareto inefficient. This provides the incentive for countries to coordinate their policies.
Prospectus Issue: Under a prospectus issue the company sells the shares directly to the public rather than selling them through intermediaries.
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What are the origins of open method of coordination The origins of the OMC lie in the Lisbon European Council (March 2000), which made its introduction as the primary means of
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