Looking at current research, there has been a lot of work in the efficacy of fiscal policies when interest rates are at their effective lower bound.2 Another major research effort focuses on the significance of financial market imperfections for macroeconomics and for macroeconomic policies.3 However, I have seen only limited amount of new work that tries to assess the role of monetary and fiscal policies in aiding the path toward the normal regime.
A careful approach requires taking a global viewpoint. I do not have time to go into further detail, except to note that this area is in need of much more research.4 IV. Interrelations between domains of fiscal and monetary policy  The latest stage of the financial crisis, the sovereign debt crisis, is also affecting the boundary between monetary and fiscal policies.