Report
The many irreversible developments resulting from the COVID crisis
The COVID crisis has led to several developments that are probably irreversible. These are: Government bonds purchased by central banks: a reduction in the size of central banks' balance sheets in the future would run an excessively high risk of a debt crisis; Structural fiscal deficits, which are very difficult to reduce (useful government spending would have to be reduced or taxes would have to be increased); Changes in working methods, consumption, town planning, and of course the acceleration of the energy transition. These irreversible developments pose various problems: Great difficulty for central banks to return to a restrictive monetary policy; Great difficulty for governments to reduce fiscal deficits; Significant changes in corporate strategies and in the sectoral structure of jobs.
Provider
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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