Report
Monetary policy, working-class savings and wealthy households’ savings
We look at the case of France, but the analysis applies to many countries. Highly expansionary monetary policy has led to very low short- and long-term interest rates, resulting in: Low returns on working-class savings (regulated savings products, life insurance euro funds), whose real returns have become highly negative; A rise in asset prices (equities, corporate valuations, real estate), leading to high returns on wealthy households ’ savings . It is shocking that the real return on working-class savings is negative. This could be corrected by : Indexing the return on “popular” savings products to inflation, for example by investing them in inflation-indexed bonds and not in nominal bonds; Developing more diversified savings products (such as France’s PER retirement savings plan) that provide low-income households with access to higher-yielding financial assets.
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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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