Report
Is neo-liberal capitalism irreversible?
To emerge from neo-liberal capitalism, OECD countries would have to: Restore the wage share of GDP; Onshore production from emerging countries to OECD countries; Reduce the demand for return on equity for shareholders. These developments would lead to a sharp rise in inflation, and therefore in interest rates, and a sharp decline in corporate profitability, probably leading to a financial crisis due to a loss of borrower solvency and a debt crisis, falling share prices and real estate prices. It must be understood that neo-liberal capitalism is the cause of the high debt ratios and the high asset prices. In order to get out of neo-liberal capitalism, one would therefore have to accept the risk of a financial crisis, which leads us towards this idea of that neo-liberal capitalism is irreversible , or at least that the initial cost of getting out of this form of capitalism is high , of which we must be aware.
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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
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