This paper applies the tacit coordination framework to the political m
acroeconomic context. The macroeconomic equilibrium is the outcome of
an administration, consisting of a large number of decision makers who
se horizon, being endogenously determined by their behavior, is uncert
ain. The public imposes a degree of discipline on the policy makers by
its option to replace the administration, and the administration impo
ses discipline on the policy makers by monitoring their effective expe
nditure. Adverse shocks or a shorter horizon are shown to reduce coope
ration among policy makers and increase the inflation rate and the use
of discretionary taxes.