Real growth and output gap
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A tale of two countries
03.06.2008
By: Wolfgang Münchau
France is reforming, Germany is not only not reforming, but anti-reforming, with new minimum and soon perhaps maximum wages. So why is everybody so optimistic about Germany, and so pessimistic about France?
Is Europe Finally Back?
16.04.2008
By: Johnny Munkhammar
Europe has declined economically compared to the United States for three decades, following differences in economic policy. As the US pursued free-market reforms, Europe maintained or expanded the size of government. Following a shift in policies, however, this development might be changing to the opposite. The current dramatic economic slowdown in the US may be temporary, but we are also likely to see a long-term comeback for Europe.
A crisis is in store for Spain's election victor
02.03.2008
By: Wolfgang Münchau
Whoever wins Sunday's Spanish elections will have to sort out a huge mess. Spanish house price are set to fall by 50% in real terms, as the country's bubble-growth model is imploding.
The UK can no longer rely on being cool
26.02.2008
By: Wolfgang Münchau
Economic reality is catching up with the UK. The UK's economic miracle was little more than an overlong joyride on the back of an overlong asset price bubble.
28.01.2008 Look Beyond the Quick Fix!
28.08.2007 Cracks in the Foundations of Growth
15.01.2007 Japan and Germany: A tale of two countries
Eurointelligence Briefing Notes
Why the European Debate on Competitiveness is going nowhere
Raising competitiveness has been the prime goal of economic policy in Europe. But is it a sensible goal? Those who favour a competitiveness-based approach often make false analogies between enterprises and countries. Countries do not compete in the way companies do. Trade among countries is not about profit but about the division of labour. It can benefit all by raising productivity. A more meaningful concept of competitiveness at the national level defines a competitive country as one that can maintain high rates of growth and employment in the medium term. This concept focuses on the country’s ability to provide its citizens with high and rising standards of living in the medium and long run.
Economic reforms in the euro area: Is there a common agenda? by Xavier Debrun and Jean Pisani-Ferry, Bruegel
Despite the recent growth revival, the state of the euro area economy remains vexingly disappointing. What is taking place is too little, too late and the very fact that output growth only started to pick up in the fourth year of the global recovery suggests that something must be wrong. Against this background, the overriding priority remains to design and implement policy packages aiming at: Increasing potential output through higher employment, higher labour participation, and higher productivity; Ensuring that actual output does not lag behind gains in potential output.