However, in a world where interest rates are so low, I think it’s perfectly possible to reconcile the fact that you need to make sure that your long-term fiscal goals are achieved with the fact that the business cycle is also affected by fiscal policy. And probably this can’t be summarised in a single rule.
Historically, this was not especially relevant because the fiscal multipliers have traditionally been low. Essentially, central banks would offset fiscal stimulus if it was proven to be inflationary. But in a world of low inflation and low interest rates, we think fiscal multipliers under the current conditions are quite high if you have the fiscal space.