It has been argued that such measures tend to provide banks with an incentive to roll over bad loans and shift risks to depositors or the government.6  5  See ECB Monthly Bulletin May, 2012 on “Comparing the recent financial crisis in the United States and the Euro Area with the experience of Japan in the 1990s”.
It was well understood that this process would not be painless, that the depreciation of the currency, the drainage of liquidity and the rising interest rates would all demand costs and sacrifices that would not be popular, and that the monetary authorities would be blamed by some ill-disposed observers for the dilemma.