Highlights

  • Growth is unlikely to reach its potential pace in the next two to three years. The rebound in activity should be very gradual, penalised by the restructuring of many sectors and a less dynamic demand.
  • The priority is to maintain a very accommodative financial conditions and the massive financing of budget deficits. Central Banks now control the entire yield curve.
  • Now there is no limit to the deficit to allow the economies to pick up at the right time. Tomorrow, it will be difficult, in the face of sluggish growth and many demands, not to continue along this path.
  • Low inflation in the short term. In the medium term, there are many arguments for a likely rebound in inflation. A change in the relative price structure of goods and services should contribute to this.
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