Let’s now consider the potential impact of households drawing down on their savings for consumption. Macroeconomic consequences of a savings drawdown for consumption We can start by thinking about how much would be spent on goods and services and over what time horizon.
The recovery from the pandemic downturn has been remarkable, especially in comparison to the Great Recession. The sector is currently producing at 3 percent above its pre-pandemic level. And, importantly, October marked 18 consecutive months of increasing manufacturing  7 See Erik Brynjolfsson, Daniel Rock, and Chad Syverson (2021), “The Productivity J-Curve: How Intangibles Complement General Purpose Technologies,” American Economic Journal: Macroeconomics, vol.