Report
The speculation economy
The world has now clearly become a “speculation economy”, which can be seen when we look at equity, commodity, real estate and cryptocurrency markets, new financial players, etc. Speculation is naturally focused on assets that are scarce. A “speculative economy” is ineffective: savings are diverted into useless uses, and there is high financial variability that unnecessarily increases the variability of the real economy. Why has there been a shift to a speculative economy? The main explanation is the persistently very low level of yields on traditional financial assets: public sector bonds, corporate bonds except the most risky. Central banks should understand that policies of permanently very low interest rates lead to a speculative economy, and that the latter leads to a less efficient economy.
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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