Should the economic policy principles of conservatism and austerity be abandoned?

An increasing number of OECD countries are keeping monetary and fiscal policies expansionary late in the expansion period, when unemployment has fallen considerably. The economic policy principle s of “ conservatism and austerity ” therefore seem to have been forgotten . In theory, not reducing the public debt ratio and not normalising interest rates during expansion periods is dangerous: it can give rise to a public debt crisis, asset price bubbles and overindebtedness in the private sector. This cannot be observed at present, even in Japan , where the principle of conservatism ha s long been cast aside. But this should not lead to the conclusion that these principle s can be forgotten : in the event of an inflationary shock, a debt crisis would rapidly ensue; economic policies are losing their countercyclical capacity.