The ideal sequencing would have been to first have a firewall in place, then do the recapitalisation of the banks, and only afterwards decide whether you need to have PSI. This would have allowed managing stressed sovereign conditions in an orderly way. This was not done. Neither the EFSF was in place, nor were banks recapitalised, before people started suggesting PSI.
Clearly, these are issues for which analytical foundations need to be strengthened or even developed from scratch to enable an internally consistent view of policy choices in different circumstances. Central bankers will obviously be avid consumers of these intellectual developments. But, even as that process unfolds, there are some important messages to be extracted from the thoughts and articulation of practitioners.