The central banks have everyone's
backs, right? Perhaps not yet. :
As governments set about borrowing trillions to fund the financial bridge over pandemic lockdowns, the market assumption is that the central banks will keep new debt piles affordable by flooring interest rates and buying, or pledging to buy, large swathes of the new bonds being sold. That’s certainly the “whatever it takes” message from the major monetary policy chiefs, calculating that at least keeping “real” inflation-adjusted borrowing costs deeply negative for the foreseeable future will make the debt explosion sustainable until there’s a return to vigorous growth.