are perceived as being too large, then we come back to traditional view: cyclical fluctuations
are must be dealt with through individual borrowing and lending, augmented by the national
use of fiscal policies. This leaves the task of imagining how to enforce fiscal discipline; the
SGP, we argued, has probably improved the situation, but it suffers from a number of
weaknesses. How to improve on the existing arrangement is an issue that goes beyond the
scope of the present paper.
19
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