"What is the nature of our predicament? The web of contracts has developed serious inconsistencies. All the promises cannot possibly be fulfilled. Insisting that they should be fulfilled will cause a collapse of very large portions of the web. This would cause serious economic and incalculable social and political consequences. Democratic political support cannot be mobilized in the legislature for any comprehensive decision on “how to repair the web”, that is, on who should pay and who should be excused from paying, etc. So monetary policy is used to – in current parlance – “kick the can down the road.” Iut it is not solving the underlying problems. It is changing some of the problems we face. And not necessarily for the better."
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