While each involves considerable pain only the third will resolve the imbalances without eventually causing inflation to accelerate or precipitating a financial and economic crisis. Monetize. One option for dealing with a fiscal imbalance is for the central bank to succumb to political pressure and monetize the debt.
They can participate in the process and for my money, I’ll do the best I can to participate, but it’s not a business of central banks. Do chief executives and governments take it seriously, or is there a danger that they come to Davos, and talk about it… The governments have to take it seriously. They all signed up to the Paris Agreement.