The example of the United States seems to show that an overheating policy it is effective, but it can only be used once!

The economic policy of overheating consists in maintaining strong demand stimulus at a time when the economy is close to full employment. This is what the United States has been doing since 2017, with an expansionary fiscal and monetary policy at the same time, and it seems that this policy is effective since the participation rate and the employment rate have risen and productivity gains have picked up in the United States. Companies that face hiring difficulties and strong demand probably attract new people to the labour market and become more efficient. The success of the overheating policy could call into question the usual countercyclical practice of economic policies. But we should not forget that overheating policy can only be used once; once interest rates are very low and fiscal deficits very high, the demand stimulation experiment cannot be repeated.