Massive fiscal deficits and unorthodox monetary policies have left many market participants worried that the Federal Reserve will unleash the inflation genie at some stage. Fed chairman Ben Bernanke insists that he is committed to price stability and has the means to achieve it. That may well be so. What’s less clear is whether Helicopter Ben, or anyone else at the Fed, will know exactly when to employ his anti-inflationary toolkit.

Mr Bernanke recently informed Congress of his plans to reduce the central bank’s bloated balance sheet. Given current distressed conditions, Mr Bernanke doesn’t anticipate removing liquidity for an “extended time”.