While the former may require keeping its cost low, the latter may demand a reduction in the extent of government debt that it holds, considering the impact it has on aggregate expenditures and thus on demand.
The market-borrowing programme of the government is determined by the fiscal parameters, but the size of the government debt impacts on the interest rates in the economy and it should be clearly recognised that there is a limit to the extent of market borrowing that the central bank can support. These dilemmas can be resolved through proper fiscal monetary coordination.