From fiscal deficits to real estate prices

We look at the situations of the United States and the euro zone. Fiscal deficits have prevented a decline in household income, and, since health constraints have reduced consumption, they have led to massive forced household savings. These forced savings are not currently being consumed, but used in part to buy old (existing) housing, leading to a sharp rise in residential real estate prices. All in all, we see that part of the fiscal deficits have led to a real estate bubble, which is an inefficient use of public money.