• US' drastic economic policy is superior to the Eurozone’s “soft” policy – Natixis

Market news

9 January 2023

US' drastic economic policy is superior to the Eurozone’s “soft” policy – Natixis

The United States' economic policy is clearly more drastic than the eurozone’s policy. Does the Eurozone's "softer" economic policy unnecessarily prolong crises? Analysts at Natixis see that the US systematically emerges from recession faster than the eurozone.

The US systematically emerges from recession faster than the Eurozone 

“The adjustment of the economy during recessions (adjustment of employment and unemployment, correction of fiscal deficits) is much ‘softer’ and more gradual in the Eurozone than in the United States. But perhaps the US’ drastic adjustment is preferable.”

“It allows for a rapid recovery in earnings, and therefore in investment, and therefore in activity and employment. US recessions are more drastic but much shorter, and on the whole less detrimental for the economy.”

 

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