The simple economic policy formula in OECD countries used again in response to the COVID crisis

OECD countries use a simpl e economic policy formula. Each time there is a problem with demand or income, debt (private then public) increases; the more the debt increases , the more monetary policy becomes expansionary to make the debt level sustainable. This can be seen again with the COVID crisis. The problem is that this formula can only be used on one condition: inflation must be low enough to allow monetary policy to be increasingly expansionary . This requires persistent wage austerity.