Prudent management of public financing is very critical to macroeconomic stability. The Government has a medium term fiscal program which sets out clearly the path of revenues, expenditures and government borrowing for the next five years.
This was related, at least partly, to the revolution in the Information and Communication Technologies, which increased productivity growth and fostered efficiency in the labour market too. A third feature of the so-called New Economy, the reduction in the variability of output growth, obviously proved to be short-lived! But a wave of over-pessimism should not submerge the previous wave of over-optimism.