More than a decade later the debate centred around the so called “Fiscal Theory of the Price Level” (FTPL, see Sims, 1994). Most of the DSGE models used for monetary policy analysis either disregard completely the fiscal side or assume a “passive” fiscal policy and an “active” monetary policy (as Leeper would put it).
To be sure, OTC derivatives dealers have been slow to take advantage of these systems, but sooner or later market forces are likely to compel them to do so.