Clarifying the debate on fiscal and monetary policies

Much of the current discussion on fiscal and monetary policies is confused, with many questionable statements being made by economists, politicians, senior officials and so on. In this Flash we want to try to clarify three points in the debate: What to make of the very sharp rise in public debt ratios? What consequences should be expected from the policy of massive fiscal deficit monetisation ? What to expect in the very long term if the policies of massive monetary expansion are kept in place?