It's easy to develop conspiracy theories around why this madness continues. I think the real truth is ignorance and an element of cognitive dissonance from policymakers.
Manipulating the cost of debt is the only instrument debt they really have so they just keep pushing that button. Asset bubbles are now so inflated that they can't really unwind the monster they have created. I would observe central banks are now guided more by capital markets fluctuations that economic fundamentals.
Something I never see mentioned is the rise of China. I think Western countries would have the confidence to accept a reduction in growth (higher/normal interest rates) if the US and European economies were still preeminent. A major recession in the US would require reductions in military expenditure which would change power dynamics in Asia and the pacific.
Manipulating the cost of debt is the only instrument debt they really have so they just keep pushing that button. Asset bubbles are now so inflated that they can't really unwind the monster they have created. I would observe central banks are now guided more by capital markets fluctuations that economic fundamentals.
Something I never see mentioned is the rise of China. I think Western countries would have the confidence to accept a reduction in growth (higher/normal interest rates) if the US and European economies were still preeminent. A major recession in the US would require reductions in military expenditure which would change power dynamics in Asia and the pacific.