They worry that, in a period of very low inflation, the Bank may do things with monetary policy, in an effort to increase inflation back to the target in short order, that might create more problems than they solve.
Will monetary policy hinder or facilitate governments’ efforts to reduce debts? While monetary policy is best set independently, I believe that a monetary policy that is focussed on price stability will make it easier for governments to reduce debt. The reason is simple. It seems unavoidable that tighter fiscal policy will restrict overall demand for goods and services in the economy.