A return to normality will only be achieved through growth that will create jobs, bring social cohesion and increase wages and salaries across the Greek population. All this is achieved by means of steady positive growth rates, which will in turn improve public debt dynamics and sustainability, but will also reduce unemployment, effectively tackle non-performing loans and private debt, and so on.
Besides the general need for such measures to be fully compatible with monetary policy, a central bank’s ability and willingness to take on financial risk is the deciding factor when it comes to drawing a red line between what the central bank can and cannot do.