Lindbeck, Assar; Niepelt, Dirk - Institute for International Economic Studies (IIES), … - 2004
We analyze motivations for, and possible alternatives to, the Stability and Growth Pact (SGP). With regard to the … former, we identify domestic policy failures and various cross-country spillover effects; with regard to the latter, we ….We discuss the advantages of replacing the Pact's rigid rules backed by fines with corrective taxes (as far as spillover effects …