What economic equilibria are possible if precautionary savings remain large?

To analyse this fairly general question, we will take the example of France. What happ ens if households and companies keep massive precautionary savings for a quite long period of time? If nothing is done, activity will be depressed for a long time; If the government borrows the excess savings and uses them to finance current fiscal deficits, demand will initially be stimulated but potential growth will decline; The excess savings would therefore have to be borrowed by the government and used to finance efficient public investments and incentives that increase corporate investment .