Are central banks’ policy choices cause to celebrate or take fright?

Central banks in OECD countries have put in place ultra-expansionary monetary policies, enabling governments’ fiscal policies to be as expansionary as they want in response to the COVID crisis in 2020, 2021 and possibly beyond. This choice of course gives reason for applause: it offsets the income loss caused by the crisis; it will make it possible to finance recovery plans, the energy transition, industries of the future, etc. Without this policy, the rise in unemployment and bankruptcies would have been much more serious. But there does not seem to be much concern at present at the negative consequences of these choices: Complete elimination of market discipline with respect to fiscal policy; Widespread asset price bubbles and volatility in capital flows; Creation of rents (financial, real estate, related to corporate concentration). The current perception is that these risks related to excess liquidity are outweighed by those stemming from the COVID crisis. But is this really the case? These risks are also serious - frightening, even.