terça-feira, maio 31, 2005
Pois, pois
In continental Europe, unemployment has been stuck between 8% and 11% since 1991 and growth has reached 3% only once in those 14 years.
If Europe's economy remains paralysed, then the federalist project is clearly dead. But if the economy recovered, the disillusionment with EU politics might quickly vanish.
Policymakers could kick-start growth by doing exactly what America did in similar circumstances in 2001: reduce interest rates and devalue the currency, reviving economic growth, whether or not voters could be persuaded to endorse the labour market and pension reforms which Europe certainly needs in the long- run.
There is only one obstacle to this monetary solution of Europe's problems. That is, of course, the European Central Bank.
All of the major shocks to the world economy since the ECB was created have originated outside Europe - the internet boom and bust, the terrorist attacks of 9/11, the Iraq oil shock, the US corporate scandals, the rise of China... Yet in every case, the euro-zone has suffered more economic and social disruption than America, Britain or Japan.
Anatole Kaletsky (edited)
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If Europe's economy remains paralysed, then the federalist project is clearly dead. But if the economy recovered, the disillusionment with EU politics might quickly vanish.
Policymakers could kick-start growth by doing exactly what America did in similar circumstances in 2001: reduce interest rates and devalue the currency, reviving economic growth, whether or not voters could be persuaded to endorse the labour market and pension reforms which Europe certainly needs in the long- run.
There is only one obstacle to this monetary solution of Europe's problems. That is, of course, the European Central Bank.
All of the major shocks to the world economy since the ECB was created have originated outside Europe - the internet boom and bust, the terrorist attacks of 9/11, the Iraq oil shock, the US corporate scandals, the rise of China... Yet in every case, the euro-zone has suffered more economic and social disruption than America, Britain or Japan.
Anatole Kaletsky (edited)
