OECD country financial markets have left the market economy

Central banks in OECD countries de facto control short-term interest rates, long-term interest rates, credit spreads, sovereign risk premia and, potentially in the near future , share prices. Financial asset prices are therefore administered by central banks and are no longer market prices. To be sure, this strategy increases the effectiveness of monetary policy. But the cost of turning market prices into administered prices should not be underestimated: in particular, the se prices no longer provide savers with information on the situation of borrowers and issuers.