Report
The two enemies of economic policies in the OECD
Fiscal and monetary policies in OECD countries are expansionary. These policies could be made ineffective by: Ricardian neutrality, which would lead to a rise in the private sector savings rate as a reaction to the fiscal deficit and the increase in public debt; Income effects affecting the household savings rate, and leading to a rise in savings in response to the low interest rates (in order to maintain the return on savings).
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Natixis
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Patrick Artus
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