Towards stagflation, but with inflation in asset prices instead of goods and services prices

In 2020-2021, OECD countries have run very high fiscal deficits, financed by money creation. This has resulted in households accumulating huge forced savings, which could not be consumed due to public health constraints. 2022-2023 could then see the following equilibrium: Significant fiscal deficit reduction, reducing growth; Use of the accumulated savings to buy assets (equities, real estate) and not to buy goods and services, leading to a rise in asset prices and not in goods and services prices. We could therefore end up with “asset price stagflation”: weaker growth combined with rapidly rising asset prices.