Report
Will Germany react by stimulating demand or supply?
Germany now faces a tough economic situation, given: The deterioration in its cost competitiveness and declining market shares; The decline of its traditional industries; The sharp rise in precautionary savings and its savings surplus. How will it react to these problems? By stimulating demand (expansionary fiscal policy) or by increasing public investment, which is what other Europeans and German socialists are calling for? In the tradition of the Schröder reforms of the early 2000s, by stimulating supply: slowdown in labour costs, corporate tax cuts, effort to lift industry up the value chain ?
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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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