The primacy of monetary policy is additionally protected by the prohibition of monetary financing in the EU Treaties and by the fiscal rules of the Stability and Growth Pact. And that, too, is based on the lessons of history.
2  BIS central bankers’ speeches  A high level of borrowing increases the pressure on the central bank to finance government debt with the help of the printing press so as to make the straightjacket of budget constraints slightly less tight. Being instrumentalised in this way easily leads to high inflation, however.