Another type of adverse real-financial feedback loop under pandemic conditions consists of the self-reinforcing nature of a sub-optimal fiscal-financial interaction process by which fiscal policy insufficiently responds to the pandemic shock in fear of triggering an unwarranted tightening of funding conditions.
Inevitably, the outlook for the future differs depending on the hypothesis favored. Actual economic developments always entail uncertainty, and not only for the reasons I just stated. Just as with other economic challenges, a final resolution to the problems posed by inflation dynamics may be too much to ask for.