He argues that portfolio balance effects do not exist in a modern, general-equilibrium theory of asset prices, and that it does not matter whether a particular risk is held in the portfolio of private investors or the central bank, for in the end the gains or losses of the central bank are transferred to the government, and via the government budget constraint, are returned to private individuals.
I think the point can fairly be made that the most critical underpinnings of our society are the Constitution and our market structures. From my perspective, however, the education that we provide our citizens about the rule of law differs dramatically from what we provide about the functioning of markets.