Given the downside risks to the outlook, there may come a time when it is helpful to reinforce the credibility of forward guidance and lessen the burden on the balance sheet with the addition of targets on the  11  See Lael Brainard (2019), “Federal Reserve Review of Monetary Policy Strategy, Tools, and Communications: Some Preliminary Views,” Remarks at the Presentation of the 2019 William F. Butler Award New York Association for Business Economics, New York, New York, https://www.federalreserve.gov/newsevents/speech/brainard20191126a.htm.
They could enhance the disciplining market influence on sovereign debtors, although conditions to involve the private sector should be flexible, to prevent a disruption of market access by sovereigns and to prevent that credit spreads correct too abruptly. Finally, I would like to stress that the European authorities, including the Eurosystem, do everything to stem the sovereign debt crisis.