The article discusses how monetary and fiscal policies interact during times of financial stress without defaulting on debt. The researchers identify two main issues in the economy: income taxes and liquidity constraints. They find that adjustments to nominal prices help maintain fiscal solvency. Three different approaches are used to achieve this: one focuses on output and public debt with a neutral monetary policy, another targets the primary deficit with an active monetary policy, and the last uses an austere fiscal rule with a passive monetary policy.