Central banks will eventually have to carry the entire stock of bonds, resulting in endless growth in the quantity of money

We look at the situations in the United States, Japan and the euro zone. In all three cases, the very high levels of public debt ratios will force central banks to keep long-term interest rates very low, and this will discourage all other economic agents (non-residents, banks, institutional investors, households) from holding bonds. The inevitable prospect is therefore a situation where central banks eventually will have to carry the entire stock of bonds (as other economic agents will have switched into either money or higher-yielding assets), and where the quantity of money (issued in exchange for central banks' bond purchases) will become considerable.