Policies for handling debt crises

There are four types of levers that policy makers can pull to bring debt and debt service levels down relative to the income and cash flow levels that are required to service them:

1. Austerity (i.e., spending less)
2. Debt defaults/restructurings
3. The central bank “printing money” and making purchases (or providing guarantees)
4. Transfers of money and credit from those who have more than they need to those who have less

Source: Big Debt Crises by Ray Dalio

As a friend of mine pointed out, there are also taxes.