That would make a sovereign debt restructuring episode more manageable for the banking system. Furthermore, two measures need to be taken to make the rules on debt more binding. First, it would be helpful for the rules of the Stability Pact to be simplified.
A focus on the median forecast amounts to emphasizing what the typical FOMC participant would do if things go as expected. But we have been living in times characterized by large, frequent, unexpected changes in the underlying structure of the economy. 15 In this environment, the most  14 A 2016 Brookings conference titled “Understanding Fedspeak” (see https://www.brookings.edu/events/understanding-fedspeak) raised several aspects of this issue.