Fiscal developments in euro area countries in 2006 turned out to be significantly better than anticipated and the latest available forecasts suggest a further reduction in the government deficit-to -GDP ratio of the euro area over the period 2007-08. However, this reflects more cyclical improvements in the context of a favourable macroeconomic outlook rather than structural progress.
We are the central bank of the U.S. and Congress has given us a quite specific and narrow mandate: promote price stability and full employment at home, period.