Monday, April 23, 2007

Econ 101

In the name of political simplifaction, Nicolas Sarkozy is defined as "right-wing" and Segolene Royal as "left-wing". But to Bloomberg News's economic perspective, Sarkozy is "supply" and Royal is "demand".

"Whether to focus on demand or supply is the main divide between the two candidates," said Dominique Barbet, senior economist at BNP Paribas in Paris. "Sarkozy is more ambitious on the labor market, while Royal wants to increase consumption." (...)

"His platform is a coherent pro-market reformist program, which should enhance potential growth," said Eric Chaney, chief European economist at Morgan Stanley in London and a former forecaster at the French Finance Ministry.

"Royal's program may spur the economy more quickly than Sarkozy's while doing little to improve its longer-term performance," said Gilles Moec, senior economist at Bank of America Corp. in London. (...) Her proposals focus on bolstering consumer demand, which already accounts for two-thirds of the economy, and may not go far enough to address barriers to growth, economists say. "She does nothing to boost potential growth," Moec said.

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1 comment:

Name: Alex Moronda said...

Because supply-side economics has not been sufficiently disproven?