Elections across major economies are putting fiscal policy and sovereign debt risks in focus for investors, with political outcomes in the U.S., Brazil, and France carrying differing implications for government spending, economic growth, and borrowing costs, Morgan Stanley Chief…
obal Economist Seth Carpenter said. To ensure this doesnât happen in the future, please enable Javascript and cookies in your browser
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. Entering text into the input field will update the search result below Quick Insights The election may affect specific fiscal policies, but meaningful fiscal adjustment remains difficult because more than 91% of government spending is mandatory.
Morgan Stanley also sees a moderately restrictive credit cycle as a risk markets may not have fully priced in. Current proposals would only stabilize the deficit. Higher taxes could weigh on growth, while spending cuts risk slowing economic activity; borrowing costs are already elevated.