The shift from private to public debt

In all countries, the decision has long been made to stimulate growth through debt. But there is a systematic chronology. It is first private sector debt that is used, then, when it becomes too large, public debt is used. This shift occurred in the early 1990s in Japan, after the 2008-2009 subprime crisis in the United States and Europe, and is now happening in China. It inevitably goes hand-in-hand with a shift to a more expansionary monetary policy to ensure government solvency (there is fiscal dominance), and therefore to financial instability caused by this expansionary monetary policy.