WILL INFLATION BE BACK DUE TO THE COVID-19 CRISIS?

Patrick Artus * Conseiller économique, Natixis. Contact : patrick.artus@natixis.com.


After reflecting on the outlook for inflation in the future and rejecting the thesis of a return to deflation in both the United States and Europe, we wonder the following question: how will the budgetary solvency of the States be restored after the considerable increase in public deficits? Most countries today reject an increase in fiscal pressure because of its effect on growth; we can no longer rely on the inflationary tax to restore the situation of public finances, which is a central point. The new type of taxation that will emerge and which will ensure budgetary solvency remains to be defined; it will be seen that this is a double taxation of a rather detestable nature.


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