The article looks at how monetary and fiscal policies interact in the European Monetary Union. By analyzing the effects of different types of monetary policy changes and government budget constraints, the researchers found that when interest rates are lowered in a traditional way, it helps offset increased government deficits. However, when interest rates are lowered in an unconventional way, the impact on inflation is less significant. This suggests that unconventional monetary policy has a weaker effect on inflation compared to traditional methods. The study also found that these effects are similar across different countries in the European Monetary Union.