The Ginsparg-Wilson algebra is the algebra underlying the Ginsparg-Wilson
solution of the fermion doubling problem in lattice gauge theory. The Dirac
operator of the fuzzy sphere is not afflicted with this problem. Previously we
have indicated that there is a Ginsparg-Wilson operator underlying it as well
in the absence of gauge fields and instantons. Here we develop this observation
systematically and establish a Dirac operator theory for the fuzzy sphere with
or without gauge fields, and always with the Ginsparg-Wilson algebra. There is
no fermion doubling in this theory. The association of the Ginsparg-Wilson
algebra with the fuzzy sphere is surprising as the latter is not designed with
this algebra in mind. The theory reproduces the integrated U(1)_A anomaly and
index theory correctly.Comment: references added, typos corrected, section 4.2 simplified. Report.no:
SU-4252-769, DFUP-02-1