Structural reforms to increase competition in  2  BIS central bankers’ speeches  product markets, particularly in services and the privatisation of services currently provided by the public sector might further accelerate growth. To improve supply side conditions will also help to dampen the negative short term impacts on aggregate demand that kick it when the necessary fiscal consolidation measures are implemented.
Inflation, by contrast, is not a feasible option. This statement might not come as a surprise from a central banker. But there are sound reasons behind: 1. Accelerated inflation would raise the risks of even higher future inflation and greater output volatility. Uncontrollable wage-price spirals would be likely. 2. It would reduce incentives for governments to lower their public debt levels. 3.