Our tools are worn. Public debt is high in most developed economies, making fiscal stimulus a risky option. Despite the Federal Reserve’s December increase, interest rates in developed economies are lower than ever, making a monetary stimulus difficult. Central Banks could engage in more quantitative easing, but in the eurozone that would depreciate the euro, further increasing the price of oil for domestic consumers. And, if inflation begins to take off at the same time as economies are pushed into recession – stagflation – options become even tougher.