11 The rationale for highly accommodative policy I have already noted that, in my view, an extended period of highly accommodative policy is necessary to combat the persistent headwinds to recovery. I will next explain how I’ve reached this policy judgment. In evaluating the stance of policy, I find the prescriptions from simple policy rules a logical starting point.
Fiscal policies should support the economic recovery while remaining in compliance with the Stability and Growth Pact. Full and consistent implementation of the Pact is key for confidence in our fiscal framework.