Might the additional savings be consumed?

Knowing whether the additional household savings accumulated during the COVID crisis will be consumed or invested is of great importance: in the first case, inflation may rise; in the second, financial and real estate asset prices will rise. We believe it is highly unlikely that the additional household savings will be consumed (we look at the United States, the euro zone and France). It would require the savings rate to become extremely low in 2021 or later. In the aftermath of the crisis and in an environment of uncertainty, it is likely that at best, the savings rate will return to its pre-COVID level, so the excess savings will not be consumed at all. We can even imagine the household savings rate remaining higher than before COVID out of precaution, adding further to the savings glut .