BIS’s Hannoun flags dangers of exceptional measures
Hervé Hannoun, the deputy general manager of the Bank for International Settlements, in June highlighted the problems central bankers face following the relative success of unconventional policies.
The exacerbation of moral hazard, as a result of central banks becoming the buyer of last resort for certain instruments, was an important reason for the swift unwinding of central bank balance sheets, which have greatly increased in size since the beginning of the crisis.
"They should not run the
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