In the long term, ratios of asset values to GDP must stabilise

At the long-term equilibrium, the ratios of debt, market capitalisation, real estate wealth and money to GDP must be stable and cannot continue to rise as a trend. When we see in the short term that some of these ratios have not stabilised and continue to rise, we should therefore conclude that an adjustment will take place, leading them to stabilise. This could result from: A fall in savings, reducing the accumulation of financial or real estate wealth; A fall in asset prices; Inflation, which increases nominal GDP; In the United States and the euro zone, the following ratios continue to diverge: US public debt; US market capitalisation; The quantity of money in the United States and the euro zone.