1.2 The Committee on Global Financial System (CGFS), which meets at the Bank for International Settlements (BIS), constituted a Working Group in 2018-19 to examine global trends in capital market development, identify various factors (legal, institutional, structural and conjunctural) that foster the development of robust capital markets, and consider the role of policy including prudential measures.
Fiscal policy balances the need to support growth in such conditions with the need to maintain a reasonable deficit and manage the public debt burden over time to minimize the burden of interest payments in the future, and to provide the government room to act, termed the fiscal space, in times of crisis.