ARTICLE 2 PRINCIPLES OF MACROECONOMIC CONVERGENCE 1. Member States agree that in order to achieve and maintain macroeconomic stability, they need to converge on stability-orientated economic policies implemented through a sound institutional structure and framework. 2. Member States agree that stability-orientated economic policies include, but are not limited to (a) restricting inflation to low and stable levels; (b) maintaining a prudent fiscal stance based on the avoidance of large fiscal deficits, monetisation of deficits and high or rising ratios of public debt to gross domestic product (GDP); (c) avoiding large financial imbalances in the economy; and (d) minimising market distortions. ARTICLE 3 INDICATORS OF MACROECONOMIC CONVERGENCE 1. Member States agree that macroeconomic stability is a desirable outcome of macroeconomic convergence and that macroeconomic convergence in the Region will be measured and monitored by the following indicators: (a) the rate of inflation in each Member State; (b) the ratio of the budget deficit to GDP; (c) the ratio of public and publicly-guaranteed debt to GDP; and (d) the balance and structure of the current account. 2. Member States agree to identify common guidelines for each of these indicators and other complementary indicators that may be specified, including structural performance and financial conditions. ARTICLE 4 FISCAL AND MONETARY POLICY CO-OPERATION 1. Member States will formulate, implement and maintain fiscal and monetary policies that are transparent, consistent and contribute towards the achievement of the principles referred to in Article 2. 2. Member States will formulate and implement sustainable fiscal and monetary policies that minimise negative spillover effects on other Member States. 4