For non-euro countries, where the risk of contagion was considered modest, the application for IMF conditional loans was not controversial. In the case of euro-area countries, however, such as Greece, a complete set of intervention options was never put on the table; some options were not considered at all, basically due to motives of prestige.
In the present environment of high inflation rates, fiscal and monetary authorities are faced with significant challenges. Taming inflation at the current juncture requires monetary and fiscal policies that are compatible and provide a clear path for both the desired inflation rate and debt sustainability.