Because benefit cuts will almost surely be at least part of the resolution, it is incumbent on government to convey to future retirees that the real resources currently promised to be available on retirement will not be fully forthcoming. We owe future retirees as much time as possible to adjust their plans for work, saving, and retirement spending.
But the adjustments needed really should take place more in the emerging world than in the United States or Europe or Japan. It is odd that, in such a circumstance, inflation targeting should be attracting some of the criticisms that have recently been seen, because were it used more widely it would tend to alleviate this co-ordination problem.