"In broad terms, policymakers faced two options during the pandemic with respect to fiscal stimulus. One route was to invoke aggressive fiscal stimulus to avoid persistent economic scarring and sluggish growth but accept elevated inflation in the face of highly atypical supply chain pressures.
The second option was to offer more muted fiscal support, and to allow for the emergence of output gaps and slow growth in consumption, which might help offset extra inflation. The U.S. chose the former, while most of the rest of the G10 opted for the latter. As a result, the U.S. has seen substantially more economic growth and more investment, but with slightly higher price levels in the initial years of the recovery."
The U.S. is significantly outperforming its G10 peers in the economic recovery from COVID-19, Robin Brooks and Ben Harris find.
www.brookings.edu