I mean it is resolved, and your two options kind of show it. The resolution is very low and slow inflationary economics, to match the growth rate in the economy

I mean it is resolved, and your two options kind of show it. The resolution is very low and slow inflationary economics, to match the growth rate in the economy. This should prioritize a safe level of saving and investment. Higher and lower rates of inflation can be enforced (via central banks) to help fight recession or demand driven inflation (price level increases). However constantly tweaking inflation rates to get the exact right level for the current period of countries economic cycle (debt/savings levels, price levels etc...) is quite difficult. So yes we do know "how" to balance an economy in a general sense, in the same way we know how to build a web application in the general sense, but there is always work do be done in the details.