The current weakness in economic growth  BIS Review 1/2002  1  undoubtedly presents a particular challenge for those countries which have not yet attained budgetary positions close to balance or in surplus or which have high public debt-to-GDP ratios.
However, rather than being detrimental to a return to sustainable economic growth, their adherence to their mediumterm objectives will strengthen consumer and investor confidence. Countries without fiscal imbalances can, of course, allow automatic stabilisers to operate fully. That said, however, there is no case for fiscal activism.