Many economists point out to the “abnormal” rise in savings as a bullish signal that will drive a stronger recovery and a consumption boom.
The figures look impressive. In the United States, JP Morgan estimates $2 trillion in deposits, up from $1 trillion before the pandemic. In the Eurozone, Bloomberg Economics estimates an excess of currency and deposit holdings of 300 billion euro, also double the level seen prior to the Covid-19 crisis. However, the devil is in the details.
Monetary policy has gone from being a tool to help states make structural reforms to become an excuse not to carry them out.
The constant financing of deficits in countries that perpetuate structural imbalances has not only not helped to strengthen growth, since the Eurozone and the United States already suffered downgrades of estimates before the Covid-19 crisis, but is also driving inflation higher.