No free lunch for central bankers

I got a fair amount of feedback from my post From anti-inflation to pro-inflation, where I described the journey that central bankers have taken from 1980 and the height of the Paul Volcker's tight monetary policy era. In the post-Lehman Crisis period, central bankers have changed their focus from fighting inflation to encouraging a little inflation, from monitoring money growth to loose monetary policy, quantitative easing, nominal GDP targeting and, finally, the loss of central bank independence coordination of monetary policy with fiscal authorities. With the news that the new government is about to launch 12T Yen (USD 136 billion) fiscal stimulus program and the BoJ appearing to acquieces and support the stimulus with more bond buying, Japan is the country that has gone furthest down this road. The market effects of the Bernanke and Draghi Put I want to address in this post the li...