OECD countries: The typical example of a non-cooperative equilibrium

In OECD countries we can currently see typical choice s of a non-cooperative equilibrium: Wage austerity policy is increasingly widespread, with competition via production costs; The corporate tax burden is falling, due to tax competition; Monetary policies are expansionary, due to competition via exchange rates. An equilibrium with higher wages and more restrictive monetary and fiscal policies would be preferable, but it would require coordination of economic policies between countries, which would be impossible currently.