Report
Patrick Artus

Each time there is a shock in OECD countries, the public debt ratio rises and monetary policy becomes more expansionary: This dynamics is not sustainable

Each time there is a shock (2000-2002, 2008-2009, 2020 with coronavirus) in OECD countries, we see that: The public debt ratio rises; Monetary policy becomes more expansionary: rate cuts, increased money supply. This divergent dynamics is obviously unsustainable: one day, monetary policy will have to be normalised and part of the public debt will have to be cancelled in order to stop this divergence.
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

ResearchPool Subscriptions

Get the most out of your insights

Get in touch