Report
Patrick Artus

Almost all the characteristics of neo-liberal capitalism are disinflationary

To increase the return on equity for shareholders, neo-liberal capitalism uses: A skewing of income distribution at the expense of employees, due to employees' loss of bargaining power; Globalisation and offshoring; Tax competition between countries; Strong investment in fossil fuels; Corporate concentration and monopoly rents. While the fifth and last characteristic is inflationary, the first four, which dominate , are disinflationary. Neo-liberal capitalism therefore generates low inflation, which also enables it to benefit from the wealth accumulation that follows the low interest rates made possible by low inflation. A return of inflation would therefore be associated with an end to neo-liberal capitalism.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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