What happens when asset prices are in the grip of central banks?

Financial Times/John Plender/7-1-2020

“A less innocent — but all too plausible — alternative reading is that investors now believe central banks will exercise complete control over asset prices for the foreseeable future. In other words, the categorical imperative of policymakers doing ‘whatever it takes’ to counter the current crisis could ensure a lasting decoupling of equity prices from ailing economies.

USAGOLD note:  Plender thoughtfully lays out the possible scenarios if and when the Fed moves to yield control Including those he describes as “morally hazardous.” The short answer to FT’s headline question? Helicopter money and its economic cousin, MMT, come to mind.