Markets have fallen because the era of free money is coming to an end

AFTER THE interest-rate cuts and hectic central-bank bond-buying of early 2020, investors came to believe that central-bank stimulus would pretty much last for ever. Today, however, as investors come to terms with the end of the era of free money, financial markets are in spasms. Markets now expect interest rates to increase four times in 2022 as the Fed fights the inflation that has lifted growth in the consumer-price index to 7%, a level barely imaginable a year ago. On January 26th the Fed confirmed that it would end its bond-buying programme and signalled that it would probably raise rates soon.