Report
Disappearance of capacity for countercyclical action for governments in OECD countries: The “class struggle†has a bright future
By letting very high public debt ratios appear and by maintaining highly expansionary monetary policies, OECD countries have lost the capacity to conduct countercyclical policies in the future if that becomes necessary. What will be the consequences of the disappearance of counter-cyclical policies? Obviously, larger economic cycles; But also increased conflict between companies and employees for the distribution of cyclical risk; since cycles will be more drastic , companies will want to offset them through increased labour market flexibility ; employees will refuse to bear cyclical risk as wages increase more slowly than productivity. The class struggle (conflicts between employees and shareholders) will be strengthened by the disappearance of countercyclical policies.
Provider
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.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.