"But at some point, economies will recover, central banks will tighten the money supply, and interest rates will rise. We may see price inflation of consumer goods and labor too, although that is less clear."
That would be a huge mistake. There's no good reason to do this unless there is runaway consumer price inflation, but even then it's more likely that the dollar will be sacrificed. Governments and corporations need cheap debt, they benefit from a depreciating dollar. Asset prices can just stay permanently inflated. You'll have a zombie economy. I'd call this the "Japanese Model". Such an economy may be inefficient, but the alternative of letting it all crash and burn in the hopes of something better arising from the ashes is an Austrian fantasy. It's not politically feasible.
That would be a huge mistake. There's no good reason to do this unless there is runaway consumer price inflation, but even then it's more likely that the dollar will be sacrificed. Governments and corporations need cheap debt, they benefit from a depreciating dollar. Asset prices can just stay permanently inflated. You'll have a zombie economy. I'd call this the "Japanese Model". Such an economy may be inefficient, but the alternative of letting it all crash and burn in the hopes of something better arising from the ashes is an Austrian fantasy. It's not politically feasible.