- "There were two opposing opinions during the G20 in Toronto at the end of June 2010:
• that of countries which want the stimulation of the global economy to be extended (United States, China):
• that of countries which favour deleveraging and a reduction in fiscal deficits (Europe)."
- "First of all, we understand the differences of opinion: the United States and China can stimulate their economies without any difficulty (purchases of Treasuries by non-residents in the United States, efficiency of monetary policy in China, and high potential growth in both cases). This is far more difficult in Europe (low potential growth making it difficult to reduce
indebtedness, sovereign debt crisis) and pressure from financial markets. Fundamentally, we cannot imagine that the economies’ growth will be permanently linked to the rise in the total debt, public (in Europe) and private."
- "At a given moment, the issue of long-term growth (productivity, innovation) must be dealt with, and it should no longer be believed that debt can be the solution if potential growth is insufficient, which makes Europe’s situation very different from that of United States or China."
Natixis Flash Economics 345 20100705
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