After all, partnership implies a degree of coordination that would be inconsistent with an independent central bank. But I will suggest that, in a low interest rate environment, there are strong complementarities between fiscal and monetary policy that can help lift the euro area economy out of the current low-growth, low-inflation trap.
The need for novel monetary policy measures Low interest rates have sparked a remarkable public debate. In many advanced economies, they have exposed central banks to severe criticism and have even called into question the paradigm of modern independent central banking. In the euro area, the coincidence of low inflation and low interest rates has led to opposing views.