Will central banks’ reaction to inflation bring an end to bubbles, expansionary fiscal policies and the use of leverage?

The very high inflation will force central banks to react. The question is whether the rise in real interest rates will be sufficient for financial conditions to become significantly and permanently more restrictive. If so, three key features that have characterised economies since the late 1990s would disappear: Asset price bubbles; Structurally expansionary fiscal policies; The use of leverage.