Report
Patrick Artus

Curiously, an expansionary fiscal policy may lead to a social crisis

In OECD countries, the small wage increases led to low inflation, then to low interest rates, and this enabled governments to conduct expansionary fiscal policies. Expansionary fiscal policies are therefore closely associated with social austerity and a skewing of income distribution at the expense of employees. We can therefore see social crises appearing in countries that practise a very expansionary fiscal policy, since such a policy can be implemented only if wages contract.
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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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