(June 26): We are in a world in which monetary policies are being taken to extremes. The biggest central banks in the developed countries — including the US Federal Reserve, the European Central Bank, The Bank of England and the Bank of Japan — are all in sync when it comes to helping their economies recover from the devastating impact of the Covid-19 pandemic.

They are going full steam ahead on quantitative easing (QE) and near-zero or negative interest rate policies. The rationale is basic economics — by cutting the cost of capital, they are pushing businesses to invest and take on more risks and households to spend.

Suffice it to say, this current breed of central bankers have evolved far beyond their traditional role as regulators and ensuring a smooth-operating financial system.

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