To truncate the debate by excluding, from the outset, the valid modifications to this “end spectrum” solution runs the risk that countries will not only fuzz the debating points, but fuzz their own understanding of the issues, and leave them unprepared for the coming challenges.
Nevertheless, those inflows contributed to the decline in long-term interest rates and increased risk appetite in many of the advanced economies. The self-reinforcing interaction between risk appetite and liquidity came back with a vengeance.