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"To be robust, such a system needs access to financing and a fiscal back-up mechanism for any net resolution costs," he said.
Mr Sims says the ECB needs to be reassured its own balance-sheet has sound fiscal backing.
Fiscal policies that stabilize debt may not provide the fiscal backing necessary for monetary policy to successfully target inflation.
"We are going to bring fiscal sanity back to this great nation," he said.
As growth recovers, he said, the administration plans to move its "fiscal position back into balance".
Still, he said, the government needs to think about putting its fiscal house back in order.
Go over and read Simon Johnson and James Kwak's four-step strategy for putting America's fiscal house back in order.
He said he would seek to institute changes at the committee to bring "fiscal sanity back to our budgeting process".
Imagine what would have happened if Congress and the president had said they were negotiating to "put the fiscal horse back in the barn" by Jan . 1
The idea was that investors would boycott the debt issues of offending countries and force governments to bring fiscal policy back into line.
"In order to get Wisconsin's fiscal house back in order, Governor Walker stood up to the big government special interests and enacted bold reforms through Act 10.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com