Report
The fundamental asymmetry between the United States and the euro zone today: Energy independence
The rise in energy prices is now revealing a fundamental asymmetry between the United States and the euro zone. The euro zone imports almost all of its energy, and the United States is almost energy independent. This means that a rise in energy prices impoverishes the euro zone, which has to pay income to the rest of the world for its energy. Such a rise generates income transfers between economic agents within the United States, but does not impoverish the United States overall. We should therefore see a decline in growth in the euro zone when energy prices rise, as in 202 2 , b ut not in the United States, and also a fall in stock market indices in the euro zone relative to the United States, due to the loss of income.
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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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