Raghuram Rajan is right that the helping hands of governments and central banks were needed when the crisis hit /FT, 13 May 2020/.
Nevertheless, we cannot pull back and let more natural market mechanisms work because the world has changed for almost all countries, business sectors, younger and older generations and all parts of our societies.
We must understand the new megatrends of the world and governments/central banks must find creative new solutions in response to them.
Both governments and central banks might use more targeted means, figure out new measurements for public debt and inflation, find new approaches towards capital and credit, new philosophy to security and much more.
We should go an extra mile instead of pulling back.
Governor Matolcsy, MNB, the Central Bank of Hungary