I remember that the 1998 national budget provided for a 4.7 percent economic growth for the following year, and in 1999 the decline ended up surpassing 3 percent. This an eloquent example to illustrate the problem. Similar references could be made to the consumption path or long-term equilibrium exchange rate.
Against an uncertain background, my approach is to prevent euphoria, adopting prudent, gradual and coordinated policies to lead the economic convergence process towards its “cruising speed.” In that framework, the classical dilemma of rules versus discretion cannot be addressed with a “corner solution.” Extreme strategies such as rigid and lock-in rules would not only lead to nowhere but also not even meet the initial aim of building fast credibility if agents do not perceive their consistency with the other policies.