The fundamental reason why central banks are doomed to never exit their expansionary monetary policies

In OECD countries, we have seen over the past 30 years: A very significant increase in debt in relation to GDP (income); A very significant increase in wealth in relation to GDP. This means that the economic equilibrium increasingly depends on: Borrowers' solvency situation; Changes in wealth, and therefore in asset prices. Central banks in OECD countries are therefore increasingly subject to a twofold constraint: Not triggering a loss of borrower solvency; Not reducing the value of wealth; which forces them to keep monetary policies expansionary no matter what. There is therefore more than “fiscal dominance”: there is “debt dominance” and “wealth dominance”.