Report
Patrick Artus

What economic policy response if 2020 is a bad year for the euro zone?

It is likely that 2020 will be a bad year for the euro zone, given: The slowdown in the global economy; The switch to more restrictive fiscal policies in France and Italy; Rising oil prices; The ongoing crisis in the automotive sector. If 2020 is a bad year for the euro zone (with growth below potential growth), its economic policy reaction would probably consist in: A significantly more expansionary fiscal policy (since interest rates cannot be lowered further), particularly in Germany; And a resumption of quantitative easing by the ECB (despite technical difficulties) to help governments finance larger fiscal deficits.
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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