OECD countries: The worse the economy gets, the better financial and real estate markets perform

The economic policy logic in OECD countries currently is simple: if the economy deteriorates, there is no limit to fiscal deficits because these deficits are fully monetised by central banks. The deterioration in the economy then leads to support of households and companies through fiscal deficits and to very rapid growth in the money supply, and to negative long-term real interest rates. The result is a rapid and sharp rise in the prices of financial and real estate assets, to the point where the deterioration in the economy paradoxically leads to an improvement in financial and real estate markets. This situation will be difficult to accept for many investors and for public opinion .