A very important question: Will the stimulus packages primarily stimulate demand or supply?

The stimulus packages implemented in OECD countries include infrastructure investments, aid for industry and research, spending on education and healthcare, investments in the energy transition, etc. The key question is whether the overall effect of these stimulus packages will be to stimulate primarily demand or supply of goods and services. If the net effect of the stimulus packages is to stimulate demand, the concern is that bottlenecks and labour shortages will worsen, as demand is already spontaneously picking up strongly after COVID, ultimately leading to a lasting rise in inflation. It is therefore to be hoped that the net effect of the stimulus packages will be to stimulate supply, especially in the sectors where demand is strong in the wake of the COVID crisis.