Nevertheless, the fiscal and economic policy reforms needed to bring about a lasting solution are, in the short run, costly – both politically and economically. Therefore, a major challenge for monetary policy is that its unconventional measures and the temporary relief they afford are not seen as an excuse to delay, or even reverse, these reforms.
Otherwise, monetary policy risks being taken hostage by fiscal policy. This would do lasting damage – to central banks’ credibility, to their ability to maintain price stability, and to public acceptance of monetary union as a whole.