Report
Patrick Artus

If the problem after a recession is the fall in potential growth, economic policy should focus on the supply side

The re is still a debate between demand-side and supply-side policies after the COVID crisis. But if: Households have accumulated financial reserves due to forced savings during the crisis; The recession, like the subprime crisis, drives down potential growth (due to the loss of productive capital, the loss of human capital and the proliferation of zombie firms), Then supply-side policies (improvement in companies’ financial situation, worker training) appear much more helpful than demand-side policies.
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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