They voice the concern that it is getting harder to build support for liberalising ideas. Both of these views have some merit, and it is possible to have an optimistic outlook, but equally to see the importance of sustaining the liberal market arrangements which already exist, and of being disposed towards further sensible reforms that may be possible over time.
Furthermore, if the market thinks that the rapid increase in the central bank’s balance sheet might cause inflation beyond the level judged appropriate, then the anticipated future short-term interest rates might rise. In short, it is the market judgment that matters rather than the central bank’s intention. Down the road, social security spending is expected to rise due to the aging.