Nalm 2013: Kotz stresses necessity of exceptional policy despite moral hazard

Problems of moral hazard resulting from action by major central banks to calm financial market turmoil are serious but unavoidable, as the alternatives are much worse, according to Hans-Helmut Kotz, a senior fellow at Goethe University in Frankfurt and a former member of the executive board at the Deutsche Bundesbank.

Delivering a keynote address on the first day of Central Banking's National Asset Liability Management 2013 conference in London today, Kotz said central banks had intervened at the