5  See Plosser (2010) for further discussion on the risks of unconstrained policy tools and the necessity of commitment devices. 6  Sargent (2010) has a thoughtful and insightful discussion on these and related issues. BIS central bankers’ speeches  3  and losers from profligate fiscal policy or excessive borrowing by private individuals and firms.
Forced redistributions of this kind, if undertaken at all, should be done through the political process and by the fiscal authorities, not through the backdoor by the central bank by way of inflationist policies. As a monetary policymaker, I do not want to be complicit in such a strategy.