As the U.S. Federal Reserve rolls out trillions of dollars to blunt the economic fallout of the coronavirus pandemic, there’s a notable difference to the last financial crisis: close to zero concern over “moral hazard” – the sticky business of bailing out those whose dilemma is of their own making. Back in 2007-2009, policymakers voiced repeated concern that bailing out banks and financial markets more generally would reward them for having taken imprudent risks. The Fed also faced a political backlash from its congressional overseers for what some saw as extending its reach into the fiscal sphere and, in effect, picking and choosing winners and losers.

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