We examine the relationship between monetary policy objectives and the central-bank financing of the government deficit in eight countries under fixed and flexible exchange rates. We find using seasonally-adjusted data that only the Bundesbank and the Federal Reserve do not accommodate the government deficit in either exchange-rate period. Furthermore, the movement to monetary targeting reduces the linkage between monetary policy and government deficits. Using seasonally-adjusted data, only the Banca d'Italia and the Nederlandse Bank possess significant accommodation of the government deficit during flexible exchange rates. Additional results are derived for other monetary policy objectives.