This has been our anchor when we had to deal with flows largely in excess of the economy’s absorption capacity in the years before the crisis. This has been our policy when we saw large outflows during the crisis. And I believe this will continue to be our policy on the way forward. 8.
When we speak about fiscal and economic policies, combining risk sharing and risk reduction means that more pooling of fiscal resources – which I believe is ultimately necessary to provide better insurance against shocks – will have to be accompanied: (i) by a new convergence process which ensures that all economies have a similar resilience to shocks; and (ii) by initiatives to restore the credibility of our fiscal rules.