Will the highly expansionary monetary policy support or bring down capitalism?
The highly expansionary monetary policy currently being conducted in OECD countries initially supports capitalism: it enables governments to run up massive fiscal deficits, and therefore to boost household income and corporate earnings while preventing an unbearable rise in unemployment and bankruptcies. But this monetary policy will drive up asset prices sharply (this move has already begun) and therefore drastically increase wealth inequality, which will lead to even more severe criticism of capitalism, and perhaps eventually to its collapse if a large majority of public opinion sees this wealth inequality as untenable.