I think the reason I’m pushing so hard in my @BrookingsEcon piece and in debates with @ProfKateJudge @GeorgeSelgin @DanAwrey is because of how sticky conventions of “law” are in central banking, throughout history. /1

If today’s approach is seen as the only one, future flexibility for the Fed will be gone and future mayhem for central banks and fiscal authorities more likely. There are real risks to the current approach. It’s not the only one available. I hope it works and expect it will. /2

But let future generations not be overburdened by the idea that creative central banking requires Treasury financing or that Treasury should just tap Fed SPVs any time for any reason. /end