But we clearly have not faced the usual consequence of over-taxing capacity constraints -- namely, an acceleration in prices. While wage gains did increase, albeit very modestly, over the year, inflation remained extraordinarily well contained. The core measure of the CPI decelerated about ½ percentage point and the overall CPI slowed more than 1¼ percentage points.
To keep public debt on a sustainable path, it is essential that the government sticks to its fiscal commitments. This means that fiscal efforts cannot be relaxed. For example: to have a debt/gdp ratio of 100% in 2025, you would need, from 2016 on, a primary surplus of about 4,5% of GDP.