The guiding principles were: 1. Free education;  2. Free basic health services;  BIS central bankers’ speeches  1  3. Infrastructure development;  4. Rural development projects; and  5. Law and order.
This is all the more true of EMU, where the institutional setting is still comparatively young, the political balance between monetary policy and fiscal policy is more complex than in other mature economies, because it is characterised by the coexistence of a supranational monetary and autonomous national fiscal policies. These considerations have to be kept in mind when talking about appropriate policy responses.