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 stubborn weakness of growth in the industrial countries since the mid-seventies is a manifestation of a serious crisis of stabilisation and adjustment whose roots go far beyond the oil price increases. Against this background there was a marked turn in the direction of economic policy as a...