I do not wish to debate here the  2  BIS Review 133/2007  optimum size of the public sector, though it is only natural that I should have an opinion on that matter.
I wish to underline, however, that changes in fiscal policy have very important implications on monetary policy, real interest rate and the real exchange rate as specified by the government in both the budget and the Memorandum on economic policy for 2008-2010.