The Minsky moment is really coming, when all economic players suddenly lose their confidence due to unsustainable high public and private debts. One of the reasons is clear-cut: major central banks really had to monetize massive fiscal deficits to forestall a debt crisis /Nouriel Roubini, Project Syndicate, 30 June 2021/.
All in all, nearly all major developed economies are in a debt trap.
There are really writings on the wall, meaning that price-to-earnings ratios are high, there are inflated housing and tech assets everywhere, there is irrational exuberance of the crypto sector and inflation is back.
Nevertheless, there are some central banks - the Russian, the PBOC, the MNB and the Czech- that have already started to change course.
All developed and emerging governments should start to reduce public debt ratios because no one can predict the arrival of the next negative supply shock.
It is better now to take baby-steps than risk an outright anti-inflation policy that would lead to a severe recession, even a depression.
Governor Matolcsy, MNB, the Central Bank of Hungary