Report
Patrick Artus

There will inevitably be a return to a stationary equilibrium

OECD economies will inevitably return to a stationary equilibrium where: Asset prices rise at the same pace as goods and services prices; The ratios of public and private debt to nominal GDP are stable; The quantity of money is stable relative to nominal GDP. If this were not the case, at some point in the future the value of assets or the money supply would be greater than the stock of savings, debt servicing would be higher than income, etc. Even if relative asset prices, debt ratios and the money supply as a percentage of GDP stabilise at very high levels without falling, this will still lead to a marked contraction in demand for goods and services (no more growth in wealth, debt or the money supply) .
Provider
Natixis
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.

 

Analysts
Patrick Artus

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