Report
What has to change in the euro zone’s economic strategy?
The euro zone has traditionally conducted a mercantilist economic strategy: growth is driven by exports, which requires control of production costs, keep ing the euro's exchange rate quite weak , and high corporate profitability that enable companies to invest . But the euro zone’s mercantilist strategy is now made ineffective by the slowdown in global trade, the global deindustrialisation, and the return to regional value chains. The euro zone will therefore have to change strategy, and switch to a strategy of stimulating growth through domestic demand, and therefore the need to: Stop the skewing of income distribution at the expense of employees; Switch to a strong currency policy and no longer a policy based on a weak exchange rate .
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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
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