Report
The two reasons why the return to regional value chains may be inflationary in the euro zone
It is more or less taken for granted that the return to regional value chains may be inflationary in the euro zone. But it is important to bear in mind that there are two reasons why this may be the case, the second being more subtle: Onshoring back to the euro zone will drive up production costs relative to production in emerging countries; When value chains are regional , investment takes place in the regions where domestic demand is vigorous. Economic policy must therefore switch from supply-side policies, aimed at improving competitiveness, to demand-side policies, including faster wage growth, which is inflationary.
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
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.