Report
Patrick Artus

The inconsistency of economic policies (in the euro zone and in France)

We emphasise the inconsistency of economic policies, using the examples of the euro zone and France. Current economic policy: Stimulates household purchasing power and demand; Drives down energy prices. This is surprising at a time when: The ECB wants to lower inflation, which requires a decline in demand and a rise in unemployment; We need to save fossil fuels and speed up the energy transition. The only policies consistent with these objectives would be policies of: Redistribution to the benefit of the poorest households, without use of debt financing, and therefore without boosting aggregate demand; Maintaining market prices for energy, with income support for low-income households not linked to their energy consumption.
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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