At other times, as in the U.S. in the 1970s, there is insufficient political will for the sometimes-painful step of monetary contraction.

FORBES: Inflation Only Gets Out of Control if You Let It

Data released over the past month indicate that the outlook for economic activity in the United Kingdom has deteriorated substantially, reflecting a sharp monetary contraction.

BBC: Central banks' official statements

Those are contagion and monetary contraction.

FORBES: Eurobond Contagion: Or What's Really Wrong With the Eurozone