What exactly are "the risks they face" for central banks? You (should) know, central banks can really print money and depreciate the currency (while sterilizing QE for proper legal contact). The doctrine of the central bank balance sheet corresponding to a debt recording instrument is just a taboo --not economics. Sufficient depreciation for economy reflation and restarting growth, will come much earlier than the total magnitude of QE is sterilized. Really printing money (without debt attached) and giving it to governments *is* market-neutral, because the money can be spent in the economy with political choices. If in doubt, this money can be evenly distributed to *all* citizens. This *will* change the problematic demand situation, advanced economies find themselves in today.



The real problem, then, is that the remaining part of QE that has to be sterilized, created an unequal wealth effect, to the benefit of corporations, and has to be reversed. When every advanced economy is trying to do the same and "emerging" economies have taken counter measures to spillover effects, the choice remains only on reforming the banking system.



Your "argument" that central banks "face risks," simply, implies that where advanced economies failed to export the ill balance sheets of their banks, the "only choice" is to keep the increased inequality this has caused (and wait for a trickle-down effect that will not come with continued failure to heal weak demand). Insisting on this story, will be eventually deciphered by the markets and will result in capital flight from "advanced" economies, as companies will be left back by rivals in "emerging" economies. Unless you expect China to fall in the same trap, which is extremely difficult for a centrally managed economy.



Either the bankers will pay for their profligate behavior, or there will be a very weak political base for capitalism in the coming 20 years. They will take "their" money to previously emerging economies.