Current developments in Greece make clear that the rules of the European Stability and Growth Pact (SGP) were neither strict enough nor enforced strictly enough. To deal with the ongoing exit from the fiscal crisis and its related phenomena, we propose a new framework for fiscal policy...

The Tobin tax idea, developed during the 1970s as a tax on foreign-exchange transactions, has found its way back into the academic and policy debates, since the Copenhagen World Social Summit and the G7 Summit in early 1995 at the latest. At both events, proposals were put forward to impose a...