Over the past week, Natixis’ chief economist, Patrick Artus, posted three blogs on FTSE Global Markets.
The first, “For how long will the United States be able to prevent the dollar from rising” questions what limit the Federal Reserve will set on liquidity creation. This is in light of the dollar possibly appreciating as the US becomes increasingly attractive to investors – thanks to its reindustrialisation, growing energy independence and shrinking external deficit.
The following post saw Artus ask “Can monetary policy replace federalism?” in which he considered the two and applied them to the euro zone, arguing that although federalism will be incredibly difficult to implement in the currency area, the ECB’s monetary policies can only ever be a temporary substitute for it.
And finally, the argument that “Long-term policies give European countries more resilience” was evaluated in his most recent post. Artus compares the policies of those European countries that have best weathered the euro zone crisis to those that continue to suffer from its effects – in correlation to three characteristics: fiscal policy, labour markets, and sophistication of the economy.