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The race towards zero will go nowhere

Rather than pretend that they can return to normalcy, central banks should be devising ways to adapt to a low-rate world

In New Zealand, for example, central bank governor Graeme Wheeler (above) has been experimenting with so-called macro-prudential steps to tame asset bubbles, including limits on leveraged lending.

FOR decades, central banks lorded over markets. Traders quivered at the omnipotence of monetary authorities - their every move, utterance and wink a reason to scurry for safe havens or an opportunity to score huge profits. Now, though, markets are the ones doing the bullying.

Take New