It is a difficult and painful task to be sure, but a monetary solution is a bridge to nowhere at best, and the road to perdition at worst – a world of rising and costly inflation and a weakening of fiscal discipline.
References Plosser, Charles I., “Credible Commitments and Monetary Policy After the Crisis,” speech presented at the Swiss National Bank Monetary Policy Conference, Zurich, Switzerland, September 24, 2010. Plosser, Charles I., “Ensuring Sound Monetary Policy in the Aftermath of Crisis,” speech presented at the U.S. Monetary Policy Forum: The Initiative on Global Markets, New York City, February 27, 2009.