I get annoyed when people talk about the legal constraints that central banks face because "do whatever the fuck they want just call it an emergency" seems to govern their actual behavior when necessary. Greece is a tiny part of the Eurozone. The ECB could have taken over their debts without causing inflation. They could've mailed giant checks to every citizen of Greece without causing inflation. They could have made the lives of actual people infinitely better at essentially no cost.
But Teh Moral Hazard!!! The only moral hazard issue we see these days is that big banks lend without fear of default, knowing well that they - not the people - will be bailed out. Both could be bailed out, of course, but apparently that's not an option. Because serving the people is not what these institutions are for.
