3  expected inflation, interest rates and the exchange rate,6 it should not come as a surprise that the typical policy response in these countries has sought to favor the rebuilding of fiscal strength even under conditions of weakness in economic activity.7 In fact, the potentially compensating effects on the latter deriving from the strengthened credibility of the macroeconomic policy framework and the lessened upward pressure on current and expected interest rates further justify this as a sensible course of action.
However, the usefulness of fiscal policy measures to counter negative shocks to our economies should not be disregarded, particularly in a context of solidly anchored fiscal accounts. The active implementation of measures directly oriented to the financial sector represent a third fundamental component of a coordinated policy package.