Report
The issue of purchasing power in France
Cal ls for faster increase in household purchasing power are becoming more and more pressing in France. But it is crucial to understand that: It is impossible to distribute incomes that are not generated, and that potential growth and productivity gains are weak in France. Using external borrowing to increase incomes only generates an intertemporal transfer, since incomes will have to be reduced at a later stage to repay the debt; Real wages are increasing faster than productivity in France, and there is therefore no shortfall in wage income growth; The decline in the household purchasing power in the first half of 2018 is mainly due to the rise in the oil price and not to domestic policies conducted in France; It is quite pointless to bolster the purchasing power of one social class by reducing that of another social class.
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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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