This 23rd Geneva Report convincingly argues that, while ‘mixing’ monetary and fiscal
is sometimes necessary, history has also shown that without a strong and credible
institutional framework, monetary-fiscal coordination can end in tears. Credibility is key.
Sustainable fiscal policy amplifies the credibility of the central bank by ruling out fiscal
dominance, and a credible central bank contributes to debt sustainability by reducing the
likelihood of disruptive self-fulfilling crises.

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