People & Profit – The pandemic piggy bank: How our savings can help the economy bounce back

Households have saved an extra $5.4 trillion over the past year, according to a report by Moody’s Analytics. Spending on items like travel and restaurants plummeted during the Covid-19 pandemic, while many people’s incomes were maintained by government aid. As some economies begin to lift restrictions, will consumers spend their savings and what sort of effect could it have on the global economy? How should governments react to the spending splurge? We discuss the potential benefits and pitfalls with Gilles Moëc, chief economist at Axa Group.