Report
Patrick Artus

Victory or failure for the Keynesians in the euro zone?

We can consider that the Keynesians have gained a victory in the euro zone because major demand-stimulating policies have been implemented since the crisis: large fiscal deficit and sharp rise in the public debt ratio in the euro zone apart from Germany; monetary policy that eventually became very expansionary in 2014-2015, after a period when the ECB resisted, during which it refused to implement a massive stimulation of demand . But we can also consider that the Keynesians have failed in the euro zone. The reason is that the demand-stimulating policies have not improved the euro zone’s structural situation; potential growth has declined, structural unemployment has risen slightly, deindustrialisation has continued. The stimulation of demand has visibly not corrected these structural problems.
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

Other Reports from Natixis

ResearchPool Subscriptions

Get the most out of your insights

Get in touch