What Were Once Vices Are Now Habits

Category: Note

The central banks of the West announced today that their temporary swap lines would be made permanent. Like QE itself, the meaning of this emergency policy instrument instituted in the crisis of 2008-2009 has changed from a massive short-term intervention against an acute and life-threatening economic injury to a massive permanent insurance policy against a chronic and annoying economic condition.

epsilon-theory-what-were-once-vices-are-now-habits-october-31-2013.pdf (349KB)