Report
Patrick Artus

What would it take for economic cycles to really disappear currently?

Is there currently a shift in OECD countries from a cyclical economy, marked by alternating periods of recessions and expansion periods, to a non-cyclical (or at least less cyclical) economy ? For cycles really to disappear in OECD countries, the following conditions would have to be met: Inflation would have to remain low so monetary policies can remain expansionary, which keeps all groups of economic agents solvent; Governments would have to avoid mistakes that destroy growth (protectionism, Brexit, etc.); Fiscal and monetary policies would have to be kept expansionary, in order to stimulate demand; And this must drive companies to become more efficient, leading to higher productivity gains and stronger growth even at full employment, as supply can meet demand.
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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