“There is no need for central banks’ balance sheets to shrink.  They could stay permanently larger; and, for some countries, permanently bigger central-bank balance sheets will help reduce public-debt burdens.  Even when permanent monetization occurs — as it almost certainly will in Japan and possibly elsewhere — it may remain forever the policy that dare not speak its name.  Such reticence may serve a useful purpose. But it must not blind central banks and governments to the full range of policy tools available to address today’s severe debt overhangs.”

http://www.japantimes.co.jp/opinion/2014/03/24/commentary/monetize-state-debt-when-deflation-risks-persist/

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