In the US, the debate is over the trade-off between short-term fiscal stimulus and long-term fiscal consolidation. In the euro area, the question is about the shared benefits of a monetary union without the shared responsibilities of a fiscal union.
In India, the question has been whether the OMOs conducted by the Reserve Bank to manage systemic liquidity are acting as a disincentive for fiscal discipline. The questions all around are: are central banks being forced beyond their comfort zone to subordinate their monetary policy stance to the government’s fiscal stance? Aren’t the so called unconventional measures, in reality, quasi-fiscal measures?