Nobody seriously challenges the need for budgetary rules in a currency union with supranational monetary policy and national budgetary policies. Both policies are linked in the medium to long term. Lasting monetary stability needs sound and reliable public finances. The pact was designed to sustain the confidence of the public and financial markets in the euro.
K C Chakrabarty: Connecting the dots Address by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the 6th CII (Confederation of Indian Industry) BANKing TECH Summit 2011, Mumbai, 28 June 2011.