Central banks' misguided analysis of the link between monetary and fiscal policy

The Federal Reserve and the ECB have called for more expansionary fiscal policies, which they have obtained, with the objective of reducing the reliance on monetary policy to stimulate activity. But the reality is going to be very different. Once the expansionary fiscal policy has been implemented, public debt ratios will rise sharply, and an expansionary monetary policy will have to be maintained to ensure fiscal solvency (there is fiscal dominance). Central banks will therefore not be able to take advantage of the expansionary fiscal policies to withdraw the monetary expansion, on the contrary. Fiscal and monetary policies are therefore not substitutable; they have become complementary.