Finally, forecasting of key macroeconomic variables has become difficult in the aftermath of the global financial crisis as the feedback loops between the global and the domestic economy, on the one hand, and between the financial and real sectors, on the other, have  2  BIS central bankers’ speeches  become more complex.
What is equally important in respect of fiscal management is the quality of public expenditure. If the government borrows and squanders that money away on unproductive current expenditure, both fiscal sustainability and growth would be jeopardized. Governments need to spend on merit goods and public goods, in particular on improving human and social capital and on physical infrastructure.