How to escape from the debt trap: Lessons from the past

Rising public debt everywhere has raised the question of how to reduce again in future. High also seems be an impediment for exit central banks from ultra-low interest rates and quantitative easing. Historical precedents proposals have included austerity, haircuts generation inflation. Each way advantages disadvantages, including uncertainty about effects side effects. We approach issue historical perspective, based on case studies prominent approaches reduction. analyse reduction through economic austerity Italy, hyperinflation Germany after World War I, inflation Argentina since 1980s, currency reform WW II, financial repression United States Kingdom II. Finally, we discuss Ronald McKinnon's order liberalisation as well Chicago Plan combined with introduction bank digital currencies option