Central banks have let the genie out of the bottle

Bloomberg/Daniel Moss/5-17-2020

“The world’s biggest economies have rolled out a plethora of monetary support measures over the past two months. If there’s one central bank that knows how hard bottling them back up will be, it’s Japan, where special operations have become a permanent fixture.”

USAGOLD note:  The Fed has already learned a lesson or two on that score and since it won’t let the stock market or the economy crash if it all can help it, Bloomberg’s Moss is probably correct:  “Policy makers will have an expansive role for years to come.”  Shall we name that genie Moral Hazard?