States would repaid their debts with Monopoly money (interest rate Central banks (Bank of Japan, European Central Bank, FED...) already did/do that over the last years and still today (even if the main goal wasn't exactly this one). But it doesn't really ...
The central bankers of the world have really painted themselves into a corner. They had the opportunity in '08 to change some fundamental things about the financial world, but they (and the politicians) chickened out. Politicians care about the short-term...
Central banks are in a corner (may be more for the ECB, BoJ and BoE than the FED). Financial markets are almost "nationalised" (one third of the Portuguese debt is owned by the ECB and more than 50% of the Japanese debt by the BoJ for instance) which mean...
Well, today the FED has "more" room for manoeuvre (even if they are too limited yet), in case of a new financial crisis, than ECB or BoE for instance. FED has already begun is "normalisation process" by (slightly) increasing its interest rates (not the ca...