The situation is different in those countries which are heavily dependent on commodity exports. These countries are suffering from the still very low oil prices – some of these countries are on the verge of or in the midst of a recession.
Milton Friedman’s famous k-percent money growth rule is one example, as are Taylor-type rules for the setting of the interest rate instrument. Unfortunately, over the past few years, the combination of a financial crisis and sustained fiscal imbalances has led to a breakdown in the institutional framework and the previously accepted barriers between monetary and fiscal policies. The pressure has come from both sides.