The standing economic orthodoxy is that Independent central bankers are adamant in their belief that their remit is purely monetary and that governments are in charge of fiscal policy.

Though at times of stress, it is well recognised that central banks should act in a coordinated fashion with national governments. This has rightly occurred across many jurisdictions since independent central banks became the common framework in developed economies towards the end of the last century. We are now not in an emergency, so central banks are once again allowed to operate their monetary levers independent of national governments. The legacy of quantitative easing (QE) has, however, left an interesting legacy for central banks in this relationship. This is best typified by the Bank of England and this is the topic we will focus on below.

The spillover effects of QE under different interest rate regimes

The impact of monetary policy on budget deficit

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